PF Withdrawal: Provident Fund or PF investment is an 'EEE' investment where the income taxpayer is given tax exemption on investment, interest earned and the maturity amount. However, this exemption is available for the PF account holder only when he or she has invested in the PF account for more than five years. 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 investor has an annual income of less than Rs 2.5 lakh, then TDS deduction can be saved by submitting form 15g/15h for PF withdrawal.

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Speaking on form 15g/15h for 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 one is going for PF withdrawal before five years of one's PF account." Singhal 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 Rs 2.5 lakh, then the earning individual will have to pay tax according to the income tax slabs the account holder would fall into in that particular financial year.

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Standing in sync with Singhal's views in 15g/15h of 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." Solanki further added 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. Earlier this limit was Rs 30,000.