Dear Sir,
I want to know if there is any provision to deduct income tax on the withdrawal of PF. Is the PF amount taxable? If yes, at what percentage?
My previous employer has deducted Rs. 16,547 as income tax on my PF amount of Rs. 157,116, i.e., at 10.50%.
Please make it clear to me as I am confused about that.
Please revert back with correct information.
From India, Ahmadabad
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1I want to know if there is any provision to deduct income tax on the withdrawal of PF. Is the PF amount taxable? If yes, at what percentage?
My previous employer has deducted Rs. 16,547 as income tax on my PF amount of Rs. 157,116, i.e., at 10.50%.
Please make it clear to me as I am confused about that.
Please revert back with correct information.
From India, Ahmadabad
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Dear Gupta,
Normally, PF is retained by the Provident Office, not by the Employer, unless an employer has approval from PF authorities for their own PF scheme/Trust. It is also withdrawn from the PF office. Employers simply deduct from employees' salary and deposit it through a challan. To the best of my knowledge, it is not taxable if withdrawn through the PF office.
Regards,
Baba Naresh
From India, Delhi
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Normally, PF is retained by the Provident Office, not by the Employer, unless an employer has approval from PF authorities for their own PF scheme/Trust. It is also withdrawn from the PF office. Employers simply deduct from employees' salary and deposit it through a challan. To the best of my knowledge, it is not taxable if withdrawn through the PF office.
Regards,
Baba Naresh
From India, Delhi
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Double taxation is not applicable. What you deposit in terms of PF, the government uses it for infrastructure development. This is why insurance is also non-taxable. Your employer does not have any right to deduct tax on PF. PF is 100% exempt from tax as far as I know.
From India, Mumbai
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From India, Mumbai
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If if you are withdrawing your PF, withdrawal is not taxable only if a person has been in continuos service for 5 years or else it is taxable as per prevailing IT rules.
From India
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From India
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Dear Viloknandan, Kindly high light more focus under which rule/section of PF it is taxable or speaks ? Regards, Baba Naresh
From India, Delhi
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From India, Delhi
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please guide me taxfree salary componet .that will be good for employee. provident fund is taxble or not. kalyani
From India, Mumbai
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From India, Mumbai
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TDS on EPF Withdrawals: Key Information
As per Section 192A, effective from 01/06/2015, if EPF is withdrawn before the 5-year mark, TDS shall be applicable at 10%. However, if the EPF amount is less than Rs. 30,000/-, then no TDS shall be deducted by EPFO. Employees may submit Form 15G/15H to EPFO, provided that the total income of the employee, including the EPF withdrawal amount, is not chargeable to tax. In such cases, no TDS shall be deducted.
Effective from 1/6/2016, the ceiling limit of Section 192A has been extended from Rs. 30,000 to Rs. 50,000. Therefore, employees can enjoy EPF withdrawals up to Rs. 50,000 without TDS deductions, even if the service period is less than 5 years.
Thanks & Regards,
V. Shakya
HR & Labour Law Advisor
From India, Agra
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As per Section 192A, effective from 01/06/2015, if EPF is withdrawn before the 5-year mark, TDS shall be applicable at 10%. However, if the EPF amount is less than Rs. 30,000/-, then no TDS shall be deducted by EPFO. Employees may submit Form 15G/15H to EPFO, provided that the total income of the employee, including the EPF withdrawal amount, is not chargeable to tax. In such cases, no TDS shall be deducted.
Effective from 1/6/2016, the ceiling limit of Section 192A has been extended from Rs. 30,000 to Rs. 50,000. Therefore, employees can enjoy EPF withdrawals up to Rs. 50,000 without TDS deductions, even if the service period is less than 5 years.
Thanks & Regards,
V. Shakya
HR & Labour Law Advisor
From India, Agra
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Provident Fund - Excluded Employee - Definition.pdf