The Finance Act, 2015 has inserted a new section 192A regarding the payment of accumulated provident fund balance due to an employee. The provision is effective from 1st June 2015.
Please find below taxability/non taxability on withdrawal of Provident Fund:
|No TDS in respect of the following case||TDS will be deducted in respect of the following cases|
|If employee withdraws PF after a period of five year.||If employee withdraws amount more than or equal to INR 30,000/- with service less than 5 years: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.
|If PF payment is less than INR 30,000/- but the member has rendered service of less than 5 years.|
|If employee withdraws amount more than or equal to INR 30,000/- with service less than 5 years but submits Form 15G/15H along with their PAN.|
|Transfer of PF from one account to another PF account.|
|Termination of service due to ill health of member/discontinuation of Business by employer/completion of project/other cause beyond the control of member.|
Further also note the following points:
Form Nos. 15G and 15H cannot be accepted if amount of withdrawal is more than INR 2,50,000/- and INR 3,00,000/- respectively.