I recently submitted Form 19A and 10C for EPS (Pension Contribution) withdrawal. The total amount in my EPS (Pension Contribution) column is Rs. 51,264.00. However, my claim has been settled for only Rs. 35,391.00.
Is this an error, or is there a reason behind this? I have submitted Form 15H.
My passbook shows as follows:
Employee Share: Rs. 79,718.00
Employer Share: Rs. 24,517.00
Pension Contributions: Rs. 51,264.00
Years Employed: 4 years and 4 months
Date of Leaving: 02-Nov-2020
Date of Filing Form 19A and 10C: 05-Jan-2020
Date of Settlement for Form 10C: 07-Jan-2020
What could be the reason for this?
Thank you,
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1Is this an error, or is there a reason behind this? I have submitted Form 15H.
My passbook shows as follows:
Employee Share: Rs. 79,718.00
Employer Share: Rs. 24,517.00
Pension Contributions: Rs. 51,264.00
Years Employed: 4 years and 4 months
Date of Leaving: 02-Nov-2020
Date of Filing Form 19A and 10C: 05-Jan-2020
Date of Settlement for Form 10C: 07-Jan-2020
What could be the reason for this?
Thank you,
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Eps withdrwal is subject to condition of number of years of service upto 10 years. Calculation is based on the propertionate index against that year x eps wage last drawn.
From India, Vadodara
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From India, Vadodara
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Service is 4 Years and 4 Months in all. I did not have EPF or EPS before 01-July-2016. Should I not have got the full amount of 51264.00?
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I understood what you've said. Is there a way I can get the difference amount of $15,873.00 back?
$51,264.00 as per passbook
$35,391.00 as per claim
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$15,873.00 difference - can it be withdrawn somehow?
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$51,264.00 as per passbook
$35,391.00 as per claim
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$15,873.00 difference - can it be withdrawn somehow?
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TDS Deduction Guidelines
TDS will be deducted in respect of the following cases:
• If an employee withdraws an amount more than or equal to Rs. 30,000/- with service less than 5 years, then:
a) TDS will be deducted at 10% if Form-15G/15H is not submitted, provided PAN is submitted.
b) TDS will be deducted at the maximum marginal rate (i.e., 34.608%) if the employee fails to submit PAN.
For more details, you can refer to the following link: https://epfindia.gov.in/site_docs/PD...ctions_Eng.pdf
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TDS will be deducted in respect of the following cases:
• If an employee withdraws an amount more than or equal to Rs. 30,000/- with service less than 5 years, then:
a) TDS will be deducted at 10% if Form-15G/15H is not submitted, provided PAN is submitted.
b) TDS will be deducted at the maximum marginal rate (i.e., 34.608%) if the employee fails to submit PAN.
For more details, you can refer to the following link: https://epfindia.gov.in/site_docs/PD...ctions_Eng.pdf
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This is for EPF. For EPF form 15H was submitted and PAN number is updated at the time of joining itself. The difference is in EPS amount. Still cannot make out why this has happened.
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EPF and EPS Claims: Form 15G/15H Requirement
Both EPF and EPS claims need separate Form 15G/15H. Please check at your end as the service period is less than 5 years. Without TDS, it would not be possible to settle the claim. If the balance is still displaying in your passbook, then contact the office for submission of the requisite exemption forms for reduced TDS.
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Both EPF and EPS claims need separate Form 15G/15H. Please check at your end as the service period is less than 5 years. Without TDS, it would not be possible to settle the claim. If the balance is still displaying in your passbook, then contact the office for submission of the requisite exemption forms for reduced TDS.
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I received the amount of $35,391.00 a few minutes ago in my bank account. The claim was submitted on January 5, 2020, and the amount was received on January 8, 2020. I'm surprised by the speed at which it was settled, but the difference in the amount still puzzles me. I did not find any option to upload Form 15G/H when submitting 10C.
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EPF/EPS Contributions and Tax Exemption
EPF/EPS contributions are exempt under Section 80C (Chapter 6A) of the Income Tax Act and have a lock-in period of 5 years. If the amount is withdrawn before the completion of 5 years, TDS is deducted as the amount may have been claimed under exemption in income tax. The department must follow the guidelines of HQ.
If we do not withdraw the money for 3-4 more months and let it reach 5+ years from the date of joining, it becomes auto-exempt. However, the member has the choice to withdraw or retain it. If the balance amount is still available in the passbook, it is advisable to hurry up and contact with a fresh Form 15G/H to ask for a reduced rate of deduction and obtain a TDS certificate to reclaim the amount in their Income Tax return to be filed.
As the query does not mention whether Form 19 is settled fully or not, it is assumed that the department has deducted 10% on the whole balance available. Since it is filed to withdraw before the completion of 5 years, the benefits of Section 80C are becoming taxable under income tax.
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EPF/EPS contributions are exempt under Section 80C (Chapter 6A) of the Income Tax Act and have a lock-in period of 5 years. If the amount is withdrawn before the completion of 5 years, TDS is deducted as the amount may have been claimed under exemption in income tax. The department must follow the guidelines of HQ.
If we do not withdraw the money for 3-4 more months and let it reach 5+ years from the date of joining, it becomes auto-exempt. However, the member has the choice to withdraw or retain it. If the balance amount is still available in the passbook, it is advisable to hurry up and contact with a fresh Form 15G/H to ask for a reduced rate of deduction and obtain a TDS certificate to reclaim the amount in their Income Tax return to be filed.
As the query does not mention whether Form 19 is settled fully or not, it is assumed that the department has deducted 10% on the whole balance available. Since it is filed to withdraw before the completion of 5 years, the benefits of Section 80C are becoming taxable under income tax.
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EPS - Form No. 10-D Pension Claim Form Aadhaar.pdf