The approach behind the Employee Provident Fund (EPF) scheme is to provide significant benefit to the employees at the time of their retirement. The scheme specifies that a nominal amount is deducted from the salary of an employee as a contribution towards the fund. According to the latest circular, which has got affected from June 1, 2015, changes have been made regarding the Income-tax rules on the EPF withdrawal by one of the biggest retirement funding associations worldwide, Employee Provident Fund Organization (EPFO).
(Update: Budget-2016)
Payment of an accumulated balance to pay an employee from PF, the threshold limit increased from Rs. 30,000 to limit Rs. 50,000. So, TDS is not applicable if PF withdrawal amount is less than Rs 50,000.
PF Withdrawal Rules associated with TDS
Cases where TDS is not applicable
- If the amount, which is to be withdrawn as PF is less than
Rs. 30000Rs. 50,000. - No tax on pf Withdrawal after 5 years or more of continuous service.
- If an employee withdraws an amount of more than or equal to
Rs. 30000Rs. 50,000 before 5 years but submits Form 15G /15H along with his / her PAN. - When a transfer of PF is from one A/c to another A/c.
- Being an EPF member, if the service has been terminated due to ill-health and he withdraws his accumulation (balance).
- If the employer discontinues the business or any cause beyond the control of EPF Scheme’s member (Employee).
Cases where TDS is applicable
When accumulation is more than Rs. 30000 Rs. 50,000 and the employee i.e. the EPF member has worked less than 5 years, then two cases are there:
- Deduction of TDS will be at 10% if PAN is submitted, but 15G/15H Forms are not.
- Deduction of TDS will be at maximum marginal rate i.e., 34.608% if PAN is not submitted.
Flowchart: TDS on EPF Withdrawal
Some other important key points:
- If the subscriber has submitted all the required forms, then he/she will get an exemption from TDS with no taxable income.
- TDS will be deducted under Section 192A of Income Tax Act, 1961 and it is deductible at the time of payment.
- Form 15G and 15H are self-declarations and may be accepted in duplicate.
- If the amount of withdrawal is beyond 2,50,000 or 3,00,000 respectively, then Forms 15G and 15H cannot be accepted.
how many times withdraw from pf advance amount?
Please clarify your query.
I have claimed PF online but my pan is not verified. Is there any chance to stop the PF Claim. Bcz I have not worked for 5years.
Contact to PF dept helpdesk.
Contacted through the mail. Not able to cancel. Can have any contact details or mail id to cancel…
Can I Do tax return if not attached the PAN card later or nowhere to get money back?
Already one time I have withdrawn some amount in my pf. (Pf advance). So how many times I can take the remaining amount. If there are any limits. Example (2 or 3 times) or more than. Please clarify.
No there are no such limits for frequency of withdrawal.
I had applied for Partial withdrawal of EPF. But I had not completed 5 years of service. Then what will be the percentage of TDS deducted from my withdrawal? When the TDS will be deducted. Can the Deducted TDS claim back? If so what is the procedure to claim the TDS Back? How long will it take to claim the TDS back? Please give me in brief.
TDS will be deducted @ 10% and you can claim the TDS deducted by filing ITR for the concerned financial year.
I have completed 5 years and still in the same job, Is it taxable if I withdraw more than 50,000?
If you withdraw after completion of 5 years, then the tax would not be levied.
Hi,
I am currently working in the same office for last two years. Now I am eligible for pf to withdraw? My employee share is 20000 and employee share is 19500. so how much amount is eligible for withdrawing. And also I am uploading my PAN number is shown error “pan verification failed(name against UAN does not match with the name in income tax department)”. So how to resolve the issue. without PAN number I have withdrawn the PF amount is taxable or not. Please guide me.
An Employee cannot withdraw Employer contribution to EPF before 58 years. An Employee can withdraw 90% of EPF balance once he reaches the age of 57 years. EPF membership does not end with leaving the job. Also if employee withdraws an amount of pf before 5 years of service then, the entire amount received is taxable. in case of name mismatch, please check details in your pan and name against UAN.
Thanks for your information. If below 5 years of service and also continuing the current job, withdrawing the amount of below 30000 is taxable or not. Because you mentioned the above chart below 50000 is not taxable. Please clarify.
If you withdraw below than Rs. 50000/- then TDS will not be deductible.
Thanks for your information…
MY PF AMOUNT BELOW 5OK. I NEED TO SUBMIT PAN OR NOT FOR WITH DRAWL OF AMOUNT PLEASE REPLY.
As per new KYC rules under PF, PAN number is mandatory to be linked with PF a/c.
I worked in two organization 1st Org 7 Years and 2nd org 6 Months. I transferred my pf account but system showing “CESSATION (SHORT SERVICE)”.So my PF is taxable or not.
Hi,
I have worked for 2.5 years and I would like to claim the PF via online mode. My PF amount withdrawal will be >50000 and hence I have to submit the 15G form for tax exemption. Is there a way to submit 15G form online?
You just have to submit Form 15G declaration in a hard copy to the TDS deductor. The deductor would file consolidated Form 15G online.
There is no such method to file Form 15G online.
Hi,
On UAN name is Rajesh
Pan name is Rajesh Mehta (verified on UAN)
PF amount less than 50k.
Then can I withdrawal PF.
Yes, you can withdraw the amount.
If PF amount 77k then withdraw the amount or not with same above issue.
Yes, you can withdraw the same.
I have transferred the amount from my old pf account to the new pf account through online.Now the employee share and employer share amount are reflecting in my new pf account but the pension contribution amount is not added from the old pf account to the new pf account. Why it is so?and how can I get that pension amount?
It will get transferred within 20-25 days but if still, it doesn’t work, contact to EPFO helpdesk.
I have worked with ICiCI bank for about 4 years, left the job in 2010; now I am working in a company from 2 years, got UAN from current employer after checking the epfo portal, I can see only last 2 years of deposit to my pf account, as I want to withdraw money for PF this is attracting TDS as it is only showing 2 years of service, how to add up that period when no UAN service was available.
I have completed 3 years of service before leaving my last company. However, I had transferred my PF from my previous employer where I had worked for 7 years. Will my PF withdrawal be taxable? The online portal shows the DOJ of PF as the date when I joined the last company.
please help!
As you have completed 5 years of continuous service (in total), no withdrawal will be taxable.
Sir, I have been working for 3.5 years in the same organisation just I want to avail the pf amount for medical emergency due to this reason can I get pf amount without tax. I have medical reports also available
As per new rules of withdrawal, for medical treatment purpose, you can withdraw the amount up to 6 times of your monthly salary or available fund in pf a/c (whichever is lower). But TDS on that amount will be deducted and you can claim the refund of TDS while filing the return of concerned FY.
Sir, I want to online claim EPF Amount but whenever I click on claim form tab it shows under maintenance. I am suffering from the last 10 days. EPFO is the highly reputed organisation and such a loose point?
Contact to department.
I had worked in a company for 43 months and I left that in last year in April – 17, since then doing business and had not withdrawn PF money, will this 12 months period add to earlier 43 months and can i withdraw PF after another 5 months without tax liability when total 60 months period of PF account is completed, although 17 months are such when no PF contribution happened in my account
As per rules continuous employment of 5 years will be counted and also if you remained unemployed for more than 2 months, you can withdraw the amount and that too will be taxable. It doesn’t matter if you withdraw it after completion of 5 years as you are not employed now.
I have worked 2.5 years in the old organisation but now I am working in the new organisation. My old pf account has RS 1 lac amount. I want to withdraw that amount. Because I have two UAN number one for old and second one for the new organisation.
So let me know does TDS deduction applicable on this amount or not.
I am right now working in a company with 4.4 years of experience. Right the amount share in my account is as follows: i) Employee share: 66,612 ii) Employer Share: 21,459 iii) Pension Contribution: 43,502
So I am planning to withdraw the above amount after 5 years. So will it be taxable? What are all the components that I can withdraw (only Employee & Employer share or all including Pension fund)? If I plan to switch a company in between do I need to transfer the amount or do I need to open a new account for withdrawal? If I do it will that be taxable? Confused with all these questions please do clarify the same
If you withdraw after completion of 5 years, then no amount will be taxable and if you switch your job then you not need to open a new pf account, you can continue with the same account and can withdraw after completion of 5 years (in total). But if you withdraw the amount and open a new a/c, the withdrawal will be taxable.
With reference to your statement that I can continue with the same account and can withdraw after completion of 5 years (in total), will it be possible to withdraw all the amount from my current pf account while I am working for a company in present? Do I need to provide a valid reason for doing so or else I can withdraw my amount just like that as I have completed 5 years of service including my previous company experience?
You can withdraw pf amount while on the job only for the defined reasons as are stated by EPFO and also the eligible amount and requirement of minimum service period are provided by EPFO, so you have to look after for these before withdrawal.
Dear Sir,
I have completed my 3.5 years service, so now want to withdraw the pf amount without any deductions, request you to suggest, what should I do.
IF pf amount is withdrawn before 5 years, TDS @ 10% will be deducted.
Hi,
I have worked for 3.9 years in 1 organization, Is 10% TDS applicable in cessation (SHORT SERVICE) case? if yes, then how can I remove this deduction. Can I apply form 15/H online?
PF withdrawal before 5 years will attract TDS @ 10% and form 15H is for no TDS deduction on interest paid by the bank, so this form is not applied in your case.
Sir,
As I have resigned 3 months ago and I have 9.7 Years of Aggregate service. 10% TDS is applied to my online claim of Rs. 70000. Please explain why and what can I do now?
As per rules, TDS would not be deducted but as TDS has been deducted, you can claim the refund for the same by filing ITR for the concerned period.
I have completed 1.6 years of service in the same company and my current PF balance lying as Rs. 39,000 including all employee, employer and pension contributions. So now I want to withdraw the money. So is there any TDS or tax deductible for this amount???. So please advice.
As you are withdrawing amount before 5year and as your withdrawal amount is more than Rs.50000, so TDS @ 10% will be applicable.