Section 192A of Income Tax Act

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If you had Income Tax (TDS) deducted from your Provident Fund (PF) withdrawal because you retired before completing five years of service, you may be able to claim a refund. This is possible if your early retirement was due to company policy or circumstances beyond your control. Section 192A of the Income Tax Act may provide an exemption in such cases, meaning the withdrawal might not be considered taxable salary income.

Ravindra

Ravindra (Querist)
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10 May 2020 I worked in a company for three years from 2016 to 2019 and as I attained 60 years, as per company policy they retired me. After this I applied for final withdrawal of PF from EPFO. I got the withdrawal amount, however they deducted Income Tax at 10% (TDS). Here my query is my service was only 3 years and due to my age I was not able to complete minimum age of 5 years and company as per the policy retired me. In this case can I claim refund of IT deducted. If so, under which section.

Thanks in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 May 2020 Yes you can claim refund.
As you have retired from service as per the policy of the employer which is beyond your control.

See the provisions applicable to you for which no TDS applicable.
Section 192A.
If there is a termination of employment due to employee’s ill health, completion of the project for which employee was employer, discontinuation of the employer’s business or any other reason which is beyond the control of the employee.

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