The Contractor (Labour Supplier) have deposited the PF contribution of Contract Employees in Company's PF Trust during the year 1995-2000.
The Contract Employees now wanted to withdraw the PF from Company's PF Trust. The total service of Contract Employee's is less than 5 years.
Whether the TDS will be applicable on premature of PF withdrawal considering the total service is less than 5 years? If yes, under which section and what will be the rate?
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Contract Employees PF Withdrawal before 5 Years
Replies (4)
Yes. U/s. 192A of IT act, provided the amount is 50000 or more.
As per the PF withdrawal rules, if the EPF/PF account is attached with PAN, in that case rate of TDS deduction will be 10% while in the case of EPF account not seeded with PAN, the TDS rate will get doubled means 20%.
The TDS can be avoided only if the PF member submits Form 15G or Form15H (for those above age 60) and the annual income in the financial year is less than Rs 2.5 Lakh
To the best of my understanding section 192A doesn't apply on Company's PF Trust. Section 192 should apply. Any thoughts?
Details of Sec 192
https://cleartax.in/s/section-192
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