Interest accumulated on your (employee) contributions will be taxed under the head “Income from other sources”.However, relief under Section 89 will be available. Your employer’s contributions along with the accumulated interest amount will be taxed as “profits in lieu of salary” under the head Salary.Please note that if you withdraw your PF balance before the expiry of five years of contribution, then it is taxable in the year in which you withdrew whether TDs is deducted or not. 15G or 15H are self-declaration forms that can be furnished by individuals to state that their income is below the taxable limit and hence no TDS should be deducted. The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil This form can now be submitted online while doing EPF Withdrawal.įorm No. If you withdraw offline you can submit form 15G/15H to avoid TDS.TDS is deducted at 10 % provided PAN is submitted. Otherwise, TDS is deducted at the rate of 34.608 % if PAN is not submitted.TDS on EPF is deducted if withdrawal is more than Rs 50,000.Provident fund withdrawal before five years of completion of service attracts TDS(tax deducted at source) effective from. Once you work in the organization for at least 2 years then your total number of years will be counted as 5 years. Then you joined another organization and transferred your EPF from organization 1 to new employer. Say you worked in 1 organization for 3 years. If you are withdrawing EPF after 5 years of service then no tax or TDS should be deducted.ĥ years mean 5 years of contribution to EPF, it may be in multiple companies and may have breaks. Our article How to do Full or Partial EPF Withdrawal Online explains it in detail with images and video. If you meet these requirements then you can withdraw online.

On, EPFO announced that all EPF Member’s who have activated their UAN and seeded their KYC (Aadhaar) with EPFO will be able to apply for PF Final Settlement (Form19), Pension Withdrawal Benefit (Form10-C) and PF Part Withdrawal (Form31) from the UAN Interface directly. But now with UAN number, EPFO can find out whether you are employed or not and hence EPFO can theoreticallyreject your application. The rules are that an employee should not be in employment for two months after resigning if he has to withdraw his Provident Fund amount.Įarlier one could withdraw EPF from one job even after joining another job as EPFO could not track if one is working or had a PF account. Verify Bank Details TDS on EPF Withdrawal and Form 15G EPF Withdrawal

Form 15g download pdf