TDS on EPF withdrawal, the way to save TDS on pf withdrawal: Tax Deducted at Supply (TDS) turns into relevant on retirement-oriented funding instrument–Worker provident fund (EPF) if an worker withdraws cash from the respective EPF earlier than 5 years of account opening.

Nevertheless, as per the EPF withdrawal guidelines, in sure instances, an account holder withdrawing the stability earlier than 5 years of completion can keep away from tax deductions.

TDS on EPF withdrawal: When is TDS not deducted in EPF withdrawal?

As per the EPFO portal, TDS shall not be deducted within the following instances:

• If service rendered is 5 years or extra, ie., if the worker withdraws PF after a interval of 5 years.
• If the PF fee is lower than Rs. 30,000 however the member has rendered service of lower than 5 years.
• If an worker withdraws an quantity greater than or equal to Rs 30,000 with service lower than 5 years however submits Kind 15G/15H together with their PAN
• In case of switch of PF from one account to a different PF account.
• In case of termination of service as a result of in poor health well being of member or discontinuation of enterprise by employer or completion of venture or different trigger past the management of member.

ALSO READ–EPF passbook password change: This is the way to reset your password – Step-by-step information

Earnings tax on EPF withdrawal: When is TDS relevant in PF withdrawal?

TDS shall be relevant within the following instances: 

If an worker withdraws an quantity greater than or equal to Rs 30,000 with service lesser than 5 years, then

• In case the worker fails to submit PAN, then TDS shall be deducted on the most marginal charge i.e. 34.608 per cent.  
• In case PAN is submitted, TDS shall be deducted at 10 per cent if Kind-15G/15H is just not submitted supplied.

It’s to be famous that TDS is deductible on the time of fee. Kind 15H is for senior residents i.e., 60 years & above whereas Kind 15G is for people having no taxable revenue.
Kind 15G & 15H are self-declarations and could also be accepted as such in duplicate, as per the official notification.

(With inputs from official notification)

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