Curious About PF Withdrawal Limits: Why Is the TDS Threshold Set at 30,000?

Dear Seniors,

My query regarding PF withdrawal time: for government-fixed amounts less than 30,000/-, no TDS is applicable, and for amounts above 30,000/-, TDS is applicable. I am aware of TDS calculation for amounts exceeding 30,000/- in PF (such as PAN card submission, Form 15G/15H). My question is, why has the government set the limit at "30,000"? Is there a specific reason for this?

Regards,
Suresh

Dear Mr. Suresh,

To my knowledge, it is a privilege for the low-earning community. Please note that if the member has a service of 5 years or more, TDS is not applicable.

Abbas.P.S