Hi, when I tried to withdraw my EPF, I received an email from my employer stating, "Form 15G with 2 copies. If the PF withdrawal amount is more than 50K and continuous membership is less than 5 years, then TDS will be deducted at 10%. To get this exemption, the employee can share the income declaration in Form 15G by contacting a tax adviser/tax consultant. If the employee is okay with the 10% TDS deduction, the employee needs to send a self-declaration letter for TDS approval."
I have not worked with the company for five years, and my total work experience is also less than five years. I didn't understand the exemption they are talking about. Do I have to pay 10 percent as TDS for the full amount? Can someone please explain this to me?
Thank you for taking the time to read my query.
From India
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I have not worked with the company for five years, and my total work experience is also less than five years. I didn't understand the exemption they are talking about. Do I have to pay 10 percent as TDS for the full amount? Can someone please explain this to me?
Thank you for taking the time to read my query.
From India
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Yes, income tax will be deducted at source (TDS) if the member leaves the services before the completion of five years. The withdrawal PF amount is more than Rs. 30,000/-. TDS will be deducted at 10% provided PAN is submitted. In case Form No. 15G or 15H is submitted by the member, then no TDS will be deducted. TDS will be deducted at the maximum marginal rate (34.608%) if a member fails to submit PAN and no Form 15G or 15H.
TDS will not be deducted if:
- PF is transferred to another PF account
- If PF payment is less than Rs. 30,000 and the service period is also less than 5 years.
- If the member withdraws PF after 5 years of continuous service, including service with the former employer.
- If the termination of service is due to the ill health of the member, discontinuation/contraction of business by the employer.
From India, Madras
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1015TDS will not be deducted if:
- PF is transferred to another PF account
- If PF payment is less than Rs. 30,000 and the service period is also less than 5 years.
- If the member withdraws PF after 5 years of continuous service, including service with the former employer.
- If the termination of service is due to the ill health of the member, discontinuation/contraction of business by the employer.
From India, Madras
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PF Withdrawal form.doc
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