Following amendment will be effective from 1st June 2015, hence we need to collect form 15G/15H & copy of PAN compulsory. If copy of PAN is not submitted by an employee TDS will be deducted @ 34.608%.
Amendment in Section 192A of the IT Act 1961- Instructions for deduction of TDS on withdrawal from PF,
The Finance Act, 2015 has inserted a new section 192A regarding the payment of accumulated provident fund balance due to an employee. The provision shall take effect from 1st June 2015.
Provisions related to TDS on withdrawal from Employees Provident Fund Scheme, 1952
Form No. 19
No TDS in respect of the following case: -
1)Transfer of Pf from one account to another PF account.
2) Termination of service due to ill health of member/discontinuation of Business by employer/completion of project/other cause beyond the control of member.
3) If employee withdraws PF after a period of five year.
4) If PF payment is less than Rs 30000/- but the member has rendered service of less than 5 years.
5) If employee withdraws amount more than or equal to Rs. 30,000/- with service less than 5 years but submits Form 15G/15H along with their PAN.
TDS will be deducted in respect of the following cases:
1) If employee withdraws amount more than or equal to Rs. 30000/- with service less than 5 years, then
2) TDS will be deducted @ 10% if Form 15G/15H is not submitted provided PAN is submitted.
3) TDS will be deducted @ maximum marginal rate (i.e. 34.608%), if employee fails to submit PAN.
1. TDS is deductible at the time of payment.
2. TDS will be deducted under section 192A of Income Tax Act, 1961.
3. Form 15H is for senior citizens (60 years & above) and Form 15G is for individuals having no taxable income. Form 15G & 15H are self-declarations and may be accepted as such in duplicate.
4. Members must quote PAN in form no. 15G/15H and in form No. 19.
5. Form Nos. 15G and 15H cannot be accepted if amount of withdrawal is more than Rs. 250000/- and Rs. 300000/- respectively.
6. If Form 19 already submitted and service period is less than five years, you are advised to furnish a copy of PAN card and other related forms with a covering letter before 28/05/2015 to avoid future troubles.