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EPF (Employee Provident Fund) is such a retirement plan, which is deposited every month from the salary of the employees. EPFO regulates in this. When an employee turns 58, his EPF account becomes mature and he can withdraw the amount deposited in it without any obligation. But if someone withdraws its amount before the maturity of the account, then he has to pay TDS. But EPFO has also made such a system for the employees, in which you can withdraw money even without the account maturing and you will not have to deduct TDS in this.
In which condition TDS is not deducted?
If an employee transfers funds from one account to another, he does not have to deduct TDS. TDS is not deducted if the employee is ill, loses his job, company closes down or any other reason beyond the control of the EPF account holder. You can withdraw money from PF even after completing five years.
Also, TDS is not deducted if the amount withdrawn from PF is less than 50,000 and the account holder has less than 5 years of service left. However, for this it is mandatory to submit Form 15G or Form 15H along with PAN card. In all these situations TDS is not deducted on withdrawal of PF money.
How much TDS is deducted?
If the employee has joined a company for less than 5 years and the amount to be withdrawn from PF is more than 50 thousand, then 10 percent TDS is deducted on it. However, if an employee has not given his PAN card information, then in such a situation TDS can be deducted up to 34 percent.
What is TDS?
People could not evade tax by throwing dust in the eyes of the government, so the provision of TDS has been made. TDS is deducted on all those sources of income, whose clear details have not been given to the government. However, at the time of filing ITR, you can file TDS return, so that you get back the deducted amount.
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