27 June 2015
respected sir,
msedcl employee submitted the medical expenditure bill which are paid from own pocket towarda his fathers heat surgery @2.04,but co has approved reimbursement rs0.60 against employee provident fund,
in audit section deducted 4500/.as tds .,is it corrct,by which rule(secion 17-94(iv)
pl.give guideline.thanks
27 June 2015
Any withdrawal from PF before completion of 5 years is taxable and TDS applicable on such withdrawal. To discourage premature withdrawal of provident fund by subscribers, Union Finance Minister Arun Jaitley has proposed a tax on such early closures.
He has inserted a new provision in his budget papers that allows for tax deduction at source (TDS) on provident fund withdrawal before five years of continuous service.
Such withdrawal will attract tax at the rate of 10 per cent.
CAclubindia
