Provident Fund ALERT! Want to withdraw EPF amount? Will TDS be applicable - Here is all you need to know
According to EPFO, withdrawal to the extent of the basic wages and dearness allowance for three months or upto 75 percent of the amount standing to credit in the EPF account, whichever is less, is the maximum permissible limit.
The Employees' Provident Fund Organisation (EPFO) allows its subscribers to make partial withdrawal and full withdrawal from employee provident fund (EPF). According to EPFO, withdrawal to the extent of the basic wages and dearness allowance for three months or upto 75 percent of the amount standing to credit in the EPF account, whichever is less, is the maximum permissible limit.
A subscriber can also apply for withdrawal of lesser amount. However, there are certain important points that one needs to know before making withdrawal from EPF account.
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1. Is there any time limit for withdrawal of Provident Fund dues?
Only in the case of resignation from service (not superannuation) a member has to wait for a period of two months for the withdrawal of the PF amount.
2. Will withdrawal be subject to deduction of income tax (TDS)?
In case a member withdraws his EPF and has rendered less than 5 years of service and the accumulated amount is more than Rs 50,000 then TDS will be applicable on the following rates:
Submission of PAN- If 15G/15H is submitted, no TDS is deducted. If 15G/15His not submitted, TDS will be deducted at 10 percent.
Non submission of PAN- TDS is deducted at maximum marginal rate (34.606 percent).
No TDS is deducted in case of transfer of fund, payment of advance and if service is terminated by employer beyond control of employee.
3. Will tax be deducted if service is more than 5 year (60 months)?
No, the service rendered at previous as well as present employer would be added to arrive at total service.
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