Vivek Dhiman (1 Points)
10 January 2020Hi All,
If employee have EPF account which is no longer active as employee has left the country. The contribution is EPF + VPF.
Year of employment is 2.5 years and same EPF account age. Now If employee withdraw EFP+VPF before 5 year age from PF account establishment, then TDS will get deducted.
Now, Is this advisable for employee to wait 2.5 years more to complete 5 years to withdraw EPF + VPF in order to save TDS?
Please advice.
Thanks,
CA Khyati Pithadia
(Chartered Accountant)
(173 Points)
Replied 16 January 2020
Yes,
If employee withdraws EPF before 5 years from registration in EPF, then the amount of EPF and Interest would be taxable in tha hands of employee.
If EPF is withdrawal is after completion of 5 years, then it would not be taxable.
So, it is better to wait for completion of 5 years and thereafter withdraw to save tax thereon.
CAclubindia
