Pf withdraw// double taxation

I have a big double of TDS on EPF withdraw.

Let's start with an example.

FY 2016-17

Mr. B is getting basic salary per month Rs. 15,000/-...

Interest income received from bank fd per month Rs. 20,000/- ...

Total Salary Income Rs. 1,80,000/-

Total Interest Income Rs. 2,40,000/-

EPF deduced on 1,80,000*12%=21,600/-

He has already paid income tax on this 1,80,000+2,40,000=4,20,000/-...

Now on 13.05.2017 he check that his epf balance is 70,000/- He wants to withdraw 60,000/- (before 5yrs)

In this case on 60,000/- tds will be deducted i.e. same amount going to tax again which he has already paid income tax on 1,80,000/-

So how this epf withdraw amount is taxable twice?