08 July 2015
Is employer deduct tax on EPF? incase deduct tax on EPF employer which form gives to employee.
For example : in case of salary employer deduct tax on salary and gives Form 16 to employee like that.
Employer need not deduct any tax on EPF. The TDS will apply at the time of payment of provident fund for employees with less than 5 years of service. 1.PF withdrawls before 5 years of completion of service will attract TDS at 10%.
2.If the accumulated PF balance is < 30,000, TDS would not be applicable.
3.TDS will be deducted at 34% if subscriber fails to submit PAN.
4.TDS exemption has been given to subscribers with no taxable income provided required forms are filed (15G/15H).
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