PF Withdrawal: Provident Fund or PF investment is a long-term investment tool with an 'EEE' investment benefit. On PF investments, income taxpayer is given tax exemption on investment, interest earned and the maturity amount. However, this income tax exemption is available for only those PF account holder whose PF or EPF account is more than five years old. In case investor decides to go for PF withdrawal before five years, then the PF withdrawal will be subject to income tax and TDS deduction. According to tax and investment experts, if an investor earns less than basic annual income means less than Rs 2.5 lakh per annum, then TDS deduction can be saved by submitting form 15g or 15h for PF withdrawal.

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Speaking on how to save TDS on PF withdrawal; Manikaran Singhal, a SEBI registered tax and investment expert said, "TDS deduction comes into play when the PF withdrawal amount is subject to income tax and that is possible only when the earning individual goes for PF withdrawal before five years of one's PF account." He said that in case of annual income is less than 2.5 lakh, then form 15g/15h can be submitted for PF withdrawal purpose and to avoid TDS deduction. But, the PF withdrawal amount would be considered as part of income in that financial year. If the PF withdrawal amount makes one's annual income cross basic annual income of Rs 2.5 lakh, then the earning individual will have to pay income tax according to the income tax slabs the PF account holder would fall in that particular financial year.

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Nodding Singhal's views on EPFO rules in TDS deduction on PF withdrawal; SEBI registered tax and investment expert Jitendra Solanki said, "Basically, form 15g/15h for PF withdrawal works like a declaration that one is having an annual income of less than Rs 2.5 lakh and hence should be exempted from TDS deduction on PF withdrawal amount."

On the TDS norms on PF withdrawal before five years, Solanki said, "TDS will be deducted at 10 per cent provided PAN is submitted. However, in case, PAN card is not submitted, TDS is 34.608 per cent of the PF withdrawal amount." He went on to add that TDS on PF withdrawal will be deducted if the PF withdrawal amount is more than Rs 50,000. This is applicable from June 2016.