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Tds on employees provident fund

Ritika (Student CA Final ) (134 Points)

04 August 2013

Hello,

I have one query... Is there any provision to deduct TDS on Employees Provident Fund???

If it has been deducted by the company at the time of termination of job then how we treat it in Income tax return???

Can we claim it for refund???

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3 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 04 August 2013

1) The Income Tax Dept. has empowered the Employees Provident Fund Organisation (EPFO) to deduct TDS on payments of Provident fund made to Employees where the PF is withdrawn before 5 years of Continuous Service.

2) You can claim the TDS deducted in the Income Tax Return

Note : PF received on retirement is not taxable.

Regards,

Devendra Kulkarni

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Ritika (Student CA Final ) (134 Points)
Replied 05 August 2013

Thanks a lot...!!!!

Sandeep Jadhav (Bcom ITP STP ITRPS STRPS CS CA FINAL) (1092 Points)
Replied 31 May 2015

TDS on withdrwal of EPF (Employee Provident Fund)

U/s-192A with effect form 01st June 2015.

The Finance Act 2015 has Inserted a new section 192A regarding the TDS on payment of accumulated provident fund balance due to an employee, The provision shall take effect from 01st June 2015.

Income Tax shall be deducted at source (TDS) at the following rates,if at the time of payment of the accumulated PF balance is more than or equal to Rs. 30000/-,with service less than 5 years:-

a) TDS will be deducted @ 10% , provided PAN is submitted, (In case Form No. 15G or 15H is submitted by the member, then no TDS shall be deducted)

b) TDS will be deducted @ maximum marginal rate ({.e. 34.608%) if a member falls to submit PAN (and Form No 15G or 15H),

TDS shall not be deducted In respect of the following cases—

Transfer of PF from one account to another PF account.
Termination of service due to ill health of member, discontinuation/contraction of business by employer, completion of project or other cause beyond the control of the member.
If employee withdraws PF after a period of five years of continuous service, including service with former employer.
If PF payment is less than Rs. 30,000/-- but the member has rendered service of less than 5 Years.
If employee withdraws amount more than or equal to Rs, 30000, with service less than 5 years but submits Form I5G/15H along with their PAN.