Hi, When i tried to withdraw my epf i received an email from my employer like "Form 15G with 2 copies. (If PF withdrawal amount is more than 50K and continues membership is less than 5 years, than TDS will be deducted 10%, to get this exemption employee can share the income declaration in Form 15G by contacting tax adviser / tax consultant. If employee is ok with 10% TDS deductions than employee need to send the self-declaration letter for TDS approval")
I have not worked with the company for five years and my total work experience is also less than five years. I didn't understand the exemption they are talking about.
Do I have to pay 10 percent as TDS for the full amount? Can someone please explain this to me.
Thank you for taking the time to read my query.
From India
I have not worked with the company for five years and my total work experience is also less than five years. I didn't understand the exemption they are talking about.
Do I have to pay 10 percent as TDS for the full amount? Can someone please explain this to me.
Thank you for taking the time to read my query.
From India
Hi
Yes income tax will be deducted at source (TDS) if the member leaves the services before completion of five years the withdrawal PF amount is more Rs.30,000/-
TDS will be deducted @10% provided PAN is submitted. In case Form No.15G or 15H is submitted by the member, then no TDS will be deducted.
TDS will be deducted @ maximum marginal rate (34.608%) if a member fails to submit PAN and no Form15G or 15 H.
TDS will not be deducted if
PF is transferred to another PF account
If Pf payment is less than 30,000 and service period is also less than 5 years.
If the member with draw PF after 5 years of continuous service including service with former employer.
If the termination of service is due to ill health of member, discontinuation /contraction of business by Employer.
From India, Madras
941Yes income tax will be deducted at source (TDS) if the member leaves the services before completion of five years the withdrawal PF amount is more Rs.30,000/-
TDS will be deducted @10% provided PAN is submitted. In case Form No.15G or 15H is submitted by the member, then no TDS will be deducted.
TDS will be deducted @ maximum marginal rate (34.608%) if a member fails to submit PAN and no Form15G or 15 H.
TDS will not be deducted if
PF is transferred to another PF account
If Pf payment is less than 30,000 and service period is also less than 5 years.
If the member with draw PF after 5 years of continuous service including service with former employer.
If the termination of service is due to ill health of member, discontinuation /contraction of business by Employer.
From India, Madras
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Employee Appraisal Form new.doc
TDS circular.pdf