Tds on provident fund settlement

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Harsha Manglani (Querist)
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09 July 2013 Is there a liability on the part of Employer to deduct TDS on Provident Fund Settlement if the amount exceeds Rs. 10,00,000/- ? If yes pls tel me the method of Calculation of Such TDS

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 July 2013 No. such requirement, PF settlement happens in the department. employer just need to certify the forms

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Harsha Manglani

Harsha Manglani (Querist)
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11 July 2013 Thank you so much, just one last question if the amt is withdrawn from P.F within 5 years of period of service than is there any TDS issue ?

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 July 2013 It is taxable, but employer do not have hold on that, because the payment will come directly from department. so there is no TDS issue on that also