TDS Deduction on PF Account and EPF Saving Tips

A Complete Guide on TDS Deduction Rates / TDS Exemption details on PF Account…
EPF Saving Tips, TDS Deduction on Provident Fund (PF), TDS Exemption of Provident Fund, Tax Deduction when they have not completed the period of Time.

An employee can made up of the Provident Fund (PF) account during the employment period. An employee can deposited 12% of the money from their basic salary to the Provident Fund (PF) account. PF Withdrawl from EPF account is not allowed when the employee is still during the work. But in case of emergency, an employee can withdrawl the amount from their Provident Fund (PF) account.

An employee can withdrawal the amount when they doing job and they have not transfer the PF account. There are some provisions related to TDS, when the employee withdrawl from the Employee Provident Fund. And also in some cases, Employee’s will be exempted to pay the TDS on withdrawl of Epf amount from their own account.

TDS Deduction
TDS Deduction

TDS Deduction Rates on Withdrawl of EPF amount on their account

  • An employee can withdrawal more than the limit with submitting the PAN card details and 15G/ 15H form, they have to pay the TDS at 10% rate.
  • If an employee fails to submit PAN of Form 15G / Form 15H they can pay the TDS at the maximum marginal rate of 34.608 percent.
  • TDS will be deducted at the time of payment of PF amount under section 192A of Income Tax Act, 1961.
  • Form 15G is for the Individuals of below 60 and have no taxable income.
  • Form 15H is for the Senior Citizens of 60 years and above.
  • 15H/ 15G both are the self-declaration froms.

TDS Deduction / TDS Exemption / Benefits of Employee from EPF Provident Fund Account

  • When an employee can doing the job, they can transfer the old Provided Fund (PF) account to new Provident Fund account.
  • When an employee discontinues/ not doing the job due to Sick.
  • When the employer can closed the business, they don’t have to pay TDS on their PF account.
  • When an employee working in contractual basis / working on project, there will be 0% TDS Deduction. These employee’s can withdrawl the PF amount after the completion of contract/ project.

An employee has not completed the 5 years of the working service, they can withdrawl the amount of less than Rs.50000 from the PF account, there will be no TDS. Now the limit is extended from Rs. 30,000/- to Rs. 50,000/- If, these employee can withdrawal more than / equal of amount Rs. 50,000. They can submit the form 15G / 15H and also the PAN card details, there will no TDS have to pay the employee.