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Tds on interest on accumulated balance on recognized pf

CA RAJA SAHA (Dy Manager(F &A)) (321 Points)

15 September 2015

Kindly advice wheather TDS will be deducted on Interest earned on accumulated balance of PF if employer retains his PF in recognished PF for a period of 3 years after his retirement from service.

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3 Replies

Shishir Nayak ((Expert)) (369 Points)
Replied 16 September 2015

Finance Act 2015 that allows for tax deduction at source (TDS) on provident fund withdrawal. Under the new inserted Section 192A of Income Tax Act, provident fund withdrawal before five years of continuous service will attract a TDS (tax deducted at source) of 10%.The new provision of TDS deduction, however, will not be applicable if the provident fund withdrawal is less than Rs. 30,000.

Jain kamlesh (Student CA Final ) (21 Points)
Replied 25 September 2015

Kindly advice wheather TDS will require to be deducted by exempted trust on Interest earned by separated employees on accumulated balance of PF with Trust.

if Yes then what is the charging section of income tax???

TEJAS KARNANI (student) (160 Points)
Replied 25 September 2015

I think.......Income of trust is exempted and not of employees.Int on accumulated balance shall be deducted for employee us 192 & for others us 194A......AND tds is only to be deducted on employer contribution i.e not on employe contribution.

Pls correct me if i m wrong.

Thanks.