Hi, I have been released from my last Organisation in Delhi (based on my letter of resignation) on the 15th April 2015 after servicing them for 4.5 years. Now i would like to withdraw the PF amount accumulated as i intend to be self-employed. Understand that the PF amount to be withdrawn will attract tax at 33%. Kindly enlighten.
From India, Delhi
From India, Delhi
HI
As per latest amendments and latest circular in PF ,now TDS will be deducted on employee's PF withdrawal amounts, if services is less than 5 years and amount is more than 30000/-.
The provisions and amendments are mentioned as below.
1. Income Tax shall be deducted at source (TDS) at the following rates if at the time of payment 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 15 H is submitted by the employee, then no TDS shall be deducted on his PF payment
b) TDS will be deducted @ Maximum marginal rate (i.e. 34.608%) if a member falls to submit PAN (and no Form No 15 G or 15H)
2. No TDS in respect of the following case: -
a) Transfer of Pf from one account to another PF account.
b) Termination of service due to ill health of member/discontinuation of Business by employer/completion of project/other cause beyond the control of member.
c) If employee withdraws PF after a period of five year.
3. Notes:
1. Form 15H is for senior citizens (60 years & above) and Form 15G is for individuals having no taxable income. Form 15G & 15H are self declarations and may be accepted as such in duplicate.
2. Members must quote PAN in form no. 15G/15H and in form No. 19
3. Form Nos. 15G and 15H cannot be accepted if amount of withdrawal is more than Rs. 250000/- and Rs. 300000/- respectively
4. If Form 19 already submitted and service period is less than five years, you are advised to furnish a copy of PAN card and other related forms with a covering letter before 28/05/2015 to avoid future troubles
From India, Mumbai
2As per latest amendments and latest circular in PF ,now TDS will be deducted on employee's PF withdrawal amounts, if services is less than 5 years and amount is more than 30000/-.
The provisions and amendments are mentioned as below.
1. Income Tax shall be deducted at source (TDS) at the following rates if at the time of payment 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 15 H is submitted by the employee, then no TDS shall be deducted on his PF payment
b) TDS will be deducted @ Maximum marginal rate (i.e. 34.608%) if a member falls to submit PAN (and no Form No 15 G or 15H)
2. No TDS in respect of the following case: -
a) Transfer of Pf from one account to another PF account.
b) Termination of service due to ill health of member/discontinuation of Business by employer/completion of project/other cause beyond the control of member.
c) If employee withdraws PF after a period of five year.
3. Notes:
1. Form 15H is for senior citizens (60 years & above) and Form 15G is for individuals having no taxable income. Form 15G & 15H are self declarations and may be accepted as such in duplicate.
2. Members must quote PAN in form no. 15G/15H and in form No. 19
3. Form Nos. 15G and 15H cannot be accepted if amount of withdrawal is more than Rs. 250000/- and Rs. 300000/- respectively
4. If Form 19 already submitted and service period is less than five years, you are advised to furnish a copy of PAN card and other related forms with a covering letter before 28/05/2015 to avoid future troubles
From India, Mumbai
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