EPF TDS Treatment | TRANSFER IN - SAME OFFICE to New UAN - Income Tax

Hi all,

Please bear with my scenario and help me understand my query.

Background:

Sep-2006 to May-2012 : Worked for company ABC in India - Contribution to EPF account (Say UAN1 ) - Service period > 5years
June-2012 to May-2014: Moved abroad for another assignment - Didnt withdraw any EPF amount (Account remained ASIS)
June-2014 to Dec.2017 - Resumed working for same company ABC in India - New EPF account was created (Say UAN2) - Service period < 5years
Jan-2018 to Jan-2022 - Moved abroad for another assignment.

I had recently transferred the amount lying in UAN1 to UAN2, so all the contributions + interest is now in UAN2.

I want to withdraw the full money (PF + Pension) via the Online Claim process now .

Queries :

TDS is applicable on Full PF amount in UAN2 or only the portion that was accumulated in UAN2 (i.e shouldnt the portion that was transferred from UAN1 be exempted from TDS as there the service was > 5 years )
If I fill form 15G , which income should i consider for declaring for TDS exemption - Full PF amount in UAN2 or only the portion that was accumulated in UAN2.

Hi Vivek, thanks for sharing detailed info — your situation is quite common with multiple PF accounts and transfers. Let me clarify your doubts step-by-step:

1. TDS Applicability on Withdrawn EPF Amount (after transfer)

Key point: TDS is applicable if the withdrawal is before completion of 5 continuous years of service in the EPF account from which you are withdrawing.
When you transfer your EPF balance from UAN1 to UAN2, the combined service period is considered continuous for TDS and withdrawal exemption purposes only if the break between two service periods is less than 1 year.
In your case:
- First service period (UAN1) = Sep 2006 to May 2012 → more than 5 years.
- Gap between UAN1 and UAN2 is >1 year (from May 2012 to June 2014 you were abroad for >1 year).
- Second service period (UAN2) = June 2014 to Dec 2017 → less than 5 years.

Thus, the second service period is not continuous with the first (gap > 1 year), so:

The portion transferred from UAN1 (service >5 years) is exempt from TDS on withdrawal.
The amount accumulated in UAN2 (service <5 years) is subject to TDS on withdrawal.

2. Filing Form 15G for TDS Exemption

Form 15G is for requesting non-deduction of TDS when your total income is below taxable limit.
Since only the amount accumulated in UAN2 is taxable and subject to TDS, you should mention the taxable portion (i.e., UAN2 balance) in Form 15G.
The transferred amount from UAN1 is exempt, so you don't need to consider it for 15G declaration.

Summary

EPF Portion	Service Period	TDS on Withdrawal	Inclusion in 15G
Transferred amount (UAN1 balance)	> 5 years	No	No
New amount (UAN2 balance)	< 5 years	Yes	Yes

Additional Notes:

Make sure to keep proof of service gaps and PF transfer to substantiate exemption.
TDS rate is 10% if PAN is provided; else 20%.
Interest portion is taxable as per prevailing rules.
If your total income is below taxable threshold, filing Form 15G for the taxable portion can avoid TDS deduction.