How Can I Withdraw My PF Without TDS Deduction After Frequent Job Changes?

Dear All,

I have worked and changed my organization very frequently.

Employment History

- First Organization: 2 years
- Second Organization: 5 months
- Third Organization: 18 months

Now, I have joined a new organization (fourth) and am still working. I had transferred my PF account from the first to the second and then on to the third organization. I was not able to transfer my PF account to the fourth organization because they operate a private trust. They informed me that my PF cannot be transferred to a trust account.

PF Withdrawal and TDS Concern

I decided to withdraw my PF. However, as per the new finance act, if you withdraw PF before 5 years, TDS is deducted. I request you to please suggest if there is any way wherein I can withdraw my PF without TDS deduction. It is my money, so why should the government deduct TDS on it? My total service from the 1st organization to the third is more than 4 years, but less than 5 years. However, since I have not withdrawn the PF as yet.

Regards,
Amit Sharma

"Request you to please suggest if there is any way wherein I can withdraw my PF without TDS deduction because it's my money. Why should the government deduct TDS on the same?"

Understanding TDS on PF Withdrawals

It is not a question of PF being your money; this is the rule/law on the subject that we have to follow. Tax exemption is given on PF contributions, and if prematurely withdrawn, it attracts tax. It all depends on how much money is accumulated and what your income was in that year. If it is above the taxable limit, you will have no choice but to pay tax.

In addition to the above, it is informed that while working in an organization where provisions of EPF are applicable, the amount of PF cannot be withdrawn. Furthermore, to inform that EPFO transfers the PF amounts to Private PF Trusts along with form "K" through which pension details are also mentioned. However, the pension fund is not transferred as it is controlled by EPFO of the area, even for the Private PF Trusts.

Dear Mr. Sharma, It seems you posted the thread very casually and with a different opinion towards compliance. There are many clerical and typographical mistakes (e.g., "I worked changed," "organisation (fourth)," "so they they"). Please note that this forum is full of professionals and experienced members. When you start any post, it is clearly informed to "Be Professional."

Legal Implications of PF Withdrawal

Now, coming to your point, Mr. Natharao has rightly said this is a matter of law, not any personal choice or view. Yes, if applicable, TDS will be deducted. However, in my opinion, the withdrawal amount will be treated as income for your current financial year. If your income is less than the taxable slab, you can claim a refund through the Income Tax Return.

Senior members, please correct me if required.

Dear Sharma,

Your claim amount below 30000: you have to submit Form 15G along with your PAN card. If your PF claim amount is more than 30000, you have to submit Form 15H along with your PAN card. If you fail to submit those forms, TDS will be deducted from your claim amount. For further details, please contact me via email at vijaykrishyadav@gmail.com.

Dear Vinay,

Submission of Form 15G should be approached with caution. One must assess their income for the year. The year in which you withdraw PF, the withdrawal amount will be added to your taxable income. Do not simply submit Form 15G as a way to avoid tax; it is essential to consider the implications carefully.

Hi Sharma, you have not mentioned the total sum of the PF amount. If it is below Rs.30,000, the PF department will not deduct TDS. If it is Rs.30,000 and above, TDS will be deducted.

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