How Much TDS Applicable on EPF Withdrawal ?

TDS Applicable on EPF Withdrawal : New EPFO (Employees Provident Fund Organization) revised rule has made TDS i.e. Income Tax deducted at source applicable on EPF withdrawal effective from 1st June, 2015.

Under new rule TDS is applicable on EPF withdrawal with accumulated balance of Rs 30,000 and more and the EPF member or Employee has worked less than Five years.

Recently introduced financial amendment bill 2015 has inserted a new section ‘192A’ regarding the payment of accumulated provident fund balance due to an employee since 1st June 2015.

Let’s compare the cases where TDS Applicable on EPF Withdrawal

TDS will bot be charged in such cased of EPF withdrawal where 

  • Money have been transferred from one PF account to other
  • EPF account termination on health ground
  • Closure of employer businesses
  • For all the amount less than Rs 30,000/- or such cases where form 15G and 15H are submitted for services less than five years

Applicable TDS Rate on EPF Withdrawal

a) TDS will be deducted @ 10% .
b) TDS will be deducted @ 34.608% in case of Non Submission of PAN

c) No Deduction if Form 15G and 15H submitted

d)  Form Nos. 15G and 15H cannot be accepted if amount of withdrawal is more than Rs. 2,50,000/- and Rs. 3,00,000/- respectively.

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