TDS On EPF (Provident Fund) Withdrawal: 6 Must Know Points

Employee Provident Fund (EPF) is a popular product among salaried individuals which serves as a security and as a retirement benefit during the old age.

In the Union Budget 2015, the rules on provident fund withdrawal have been changed and the same is applicable from June 1, 2015.

How to Check EPF or Provident Fund Balance With UAN Number?

Here are few things to consider when withdrawing your EPF

5 Things to know when withdrawing EPF

1. TDS is not applicable when individuals transfer Provident Fund from one account to another Provident Fund Account.
2. If there is termination of service due to Ill health of member/discontinuation of Business by employer/completion of project/other cause beyond the control of member, in such cases TDS is not applicable.
3. If employee withdraws PF after a period of five year.
4. If PF payment is less than Rs 30,000 but the member has rendered service of less than 5 years.
5. If employee withdraws amount more than or equal to Rs 30,000 with service less than 5 years but submits Form 15G/15H along with their PAN.

What Is The Difference Between Form 15G and 15H? Which one to Use?

TDS will be deducted in respect of the following cases

6. If employee withdraws amount more than or equal to Rs 30000, with service less than 5 years, then

a) TDS will be deducted @ 10% if Form-15G/15H is not submitted provided PAN is submitted.

b) TDS will be deducted @ maximum marginal rate (i:e. 34.608%) if employee fails to submit PAN.

Note that members must quote PAN in Form No 15G / 15H and in Form No. 19 while applying.

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