Struggling with PF Withdrawal: Will TDS Be Deducted and How to Fix PAN Name Mismatch?

Hello, I want to withdraw my PF amount. I have worked for 1 year and 6 months. My PF amount is as follows: EPF - 40781 / EPS - 20474. However, my PAN is not verified in the PF account. It's showing an error because my PAN card name and the income tax department name do not match. Even though I tried to correct the name in the income tax department online by submitting a grievance, they asked for the acknowledgment number of the PAN, which I do not have with me.

TDS Deduction on PF Withdrawal

If I withdraw my PF amount, will TDS get deducted? My EPF and EPS amounts exceed 50,000/-. Will my TDS be deducted? How can I correct the name in the income tax details?

Thanks in advance

Permitted withdrawal from one's PF balance is not an income, hence not computed as taxable. Please check with an IT professional to get a clearer picture.

Harsh K Sharan, Kritarth Team

1.6.2020

How much tax is payable on EPF?

If you withdraw your EPF before completing 5 years of service, the withdrawal is taxable as follows:

The interest paid on the EPF is taxable at your slab rate.

The Employer and Employee contributions are taxable at your slab rate. This is because the deduction given to EPF contributions in previous years is reversed. These contributions now become taxable.

PAN for EPF Full Withdrawals:

For full settlement cases, TDS would be deducted if the total amount is more than ₹50,000/- and the service period is less than 5 years. The TDS amount changes according to whether you have given PAN. Full withdrawal due to unemployment of two months or more would come under this category. The following conditions apply:

If your withdrawal is between ₹50,000 and ₹2.5 lakh, no TDS would be cut if PAN is provided or Form 15G/H is submitted (if applicable). Form 15 H/G apply if your income is below the taxable limit of ₹2,50,000.

For amounts more than ₹2.5 lakh, TDS would be deducted at 10% if PAN is provided.

For amounts greater than ₹2.5 lakh, if PAN is not provided, TDS would be deducted at the maximum marginal rate of 34.608%.

Note: There is no TDS if your service is more than 5 years or the amount is less than ₹50,000, and hence you do not need to submit PAN in this case.

Hello Nathrao,

Thank you for the details, but my problem is I am not able to update my PAN because it's showing an error that the PAN name and income tax name do not match. I want to know my EPF - 40781 and EPS - 20474. Will they consider the whole amount for TDS, or will they consider only EPF for TDS deduction? If TDS is deducted, how can I correct my income tax account name?

Please reply to me regarding this because I want to withdraw my PF as soon as possible.

Hi,

My PAN name and Aadhaar name are correct, but the name in my income tax account is incorrect. How can I correct the name in the income tax department?

Thanks in advance

No tax if the amount of EPF withdrawn is more than Rs 50,000/-. If withdrawn before 5 years and the amount is less than Rs 50,000/-, it is taxable.

In most of the cases,where PAN kyc was not done ,epfo deducted the tds for all amounts due above 50k.Pls update your PAN and do kyc.
Pls if online kyc is reje ted due to mismatch of name, pls raise joint declaration and submit manually at çoncerned epf for kyc.
Alternatively Put correction request at nsdl for pan,and get renewed PAN before kyc at epfo.