Pf withdrawal queries

Circulars 1651 views 7 replies

Agharge

B.Com

24 Points Joined July 2015

Dear ALL,

PLEASE GUIDE ME ON THIS

I was working with a bank from Period of 01/July 2013 till 23/March 2015 i.e around 21 months.

There was a PF deduction of 2888/- from my salary and same amount is contributed by my employer.

My employer is having internal PF Trust as most private bank do have nowadays.

I had request for PF withdrawal after 2 months of my resignation as per PF rules for withdrawal states.

i have recived an amonth if 92708/- which i think is less as i had contributed more then what I have received.

Employer has reverted "Your Gross PF amount Rs.1,34,166.00 and TDS deducted 30% + EC=41,458.
NET amount credited to your account for Rs.92,708.00"

My queries:

1. Is My BANK (Employers) PF Trust is also governed by the "NEW PF RULES"?

2. IF YES.....What happens if an employee resign before march end, Is still the new rule for PF withdrawal applicabe to me, as it seems that the New rule is applicable from 1/06/2015..?.. Is this date to be considered as regination date OR PF withdrawal application date?

3. If new rule is applicable to me what is the TDS of PF withdrawal , as i had submitted by PAN card copy along with the withdrawal form?... employer has deducted 30% TDS.

4. Please guide me what amount should i be expecting if there is a corpuse of 1,34,166 at the time of my resignation , after considering all calculations and rules.........

Thanks

Replies (7)

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

As I understand, TDS is applicable in ur case also.
TDS is deductible at the time of payment w.e.f. 1/6/15 (date of resignation or submission of application is not relevant)
But rate of TDS should have been 10% (u need to check with employer why excess is deducted when PAN is submitted).
For more details, refer section 192A of income tax act.

sajjad hossain

CONSULTANT

50 Points Joined February 2010

The income tax rules on provident fund withdrawal from Employees Provident Fund Organisation (EPFO) have changed from June 1, 2015.

TDS POINTS ON WITHDRAWAL
1) Provident fund withdrawals before five years of completion of service will attract tax deducted at source (TDS) at 10 per cent.

2) If the accumulated provident fund balance is less than Rs 30,000, TDS would not be applicable.

3) TDS will be deducted at 34 per cent if subscriber fails to submit PAN.

4) Exemption from TDS has been given to subscribers with no taxable income, provided they submit the required forms.

5) Two avoid the levy of TDS, Form No. 15G (other than senior citizens) or 15H (for senior citizens) can be submitted, provided the provident fund amount payable is up to Rs 2,50,000 and Rs 3,00,000 respectively.

6) Form No. 15G or 15H are self-declaration forms that can be furnished by individuals to state that their income is below the taxable limit.

7) TDS shall not be deducted in case of transfer of provident fund from one account to another.

8) TDS will not be applicable in case of "termination of service due to ill health of member, discontinuation / contraction of business by employer or other cause beyond the control of the member," the retirement fund body said.

9) In case of withdrawal after five years or more of continuous service, no TDS would be applicable.

10) For computing the period of continuous service, the period of previous employment can also be included, if the accumulated balance while at previous employer is transferred to provident fund of the new employer.