Understanding TDS on EPF Settlements: How Can Employers Help Employees Save on Taxes?

TDS Provisions on PF Settlements

We are all aware that, as per the amendment in section 192A of the Income Tax Act, effective from 01/06/2015 onwards, TDS provisions will be applicable on the settlement of claims prior to 5 years. Therefore, in the interest of workers, all employers are requested to guide their employees to transfer their PF dues to their new/present accounts instead of opting for final settlement. Employers should fill Form No. 13 instead of Form No. 19 to avoid the payment of income tax. This will enable employees to avail pension and EDLI benefits for their family members up to Rs. 3,60,000/-. Notification enclosed for reference.

Thank you.

Regards

Dear all,

Enclosing the Form 15G & 15H for reference.

Thanks & Regards,

From,
Sumit Kumar Saxena

Dear friends,

EPFO issued a circular clarifying aspects regarding TDS on balances or transfer of balance (accumulation) in employees' EPF accounts and 5 years of "Continuous Service" required to qualify for exemption from TDS. The circular dated 20th May 2019 is attached for your guidance and reference.