Is there tax to be paid on withdrawing money from EPF? Know when TDS will not be applicable
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TDS on EPF withdrawal: Employee Provident Fund ie EPF is such a plan, under which the amount is deposited every month from the salary of the employees. When the age of an employee becomes 58 years, then his EPF account becomes mature and he can withdraw the amount deposited in it without any obligation. But, if someone withdraws its amount before the maturity of the account, then he has to pay TDS. However, EPFO has also made such an arrangement for the employees, in which you can withdraw money even without the maturity of the account and you will not have to deduct TDS in this.
Know when TDS will not be applicable
If an employee transfers funds from one account to another, then he does not have to deduct TDS. TDS is not deducted even if the employee is ill, loses his job, company closes down or any other reason beyond the control of the EPF account holder. Let us tell you that even after completion of 5 years, you can withdraw money from PF. Apart from this, if the amount withdrawn from PF is less than 50 thousand and the job of the account holder is less than five years, then TDS is not deducted. However, for this it is mandatory to submit Form 15G or Form 15H along with PAN card. In all these situations TDS is not deducted on withdrawal of PF money.
Know how much TDS is deducted?
If the employee has less than 5 years of joining a company and the amount to be withdrawn from PF is more than 50 thousand, then 10% TDS is deducted on it. However, if an employee has not given information about his PAN card, then in such a situation TDS can be deducted up to 34%.
What is TDS?
Provision of TDS has been made so that no one can evade tax. TDS is deducted on all those sources of income, whose clear details have not been given to the government. However, at the time of filing ITR, you can file TDS return, so that you get back the deducted amount.
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