EPFO Information: Know When TDS Is Applicable On Withdrawal

Employee Provident Fund Organization (EPFO) is a state run body that helps in collection, management and distribution of provident fund. When a person reaches at an age of 58 years then PF account matures. After turning 58 if you remain unemployed for 60 consecutive days then the EPF amount is credited in your account with interest and it is tax free.

If you take out money from provident fund before the maturity date then government charges Tax Deduction at Source (TDS). TDS is deducted if you withdraw money within 5 years of opening your account. But apart from this there are several occasions when TDS will be deducted from your account. Let’s read about situations when you will be charged TDS on withdrawal from EPF account and know how you can avoid it.

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EPFO Information: When TDS Is Deducted

• When you transfer your funds from one account to another.
• Upon termination of account due to illness of a family member.
• When you withdraw your balance after leaving company.
• If you withdraw your PF after five year period.
• When Form 15G/15H is not submitted but PAN is submitted; in this case TDS gets deducted at a rate of 10%.
• If you do not submit your PAN your TDS will be deducted at marginal rate of 34.60%.
• As per Section 192A of Income Tax Act of 1961 your TDS is deducted.