Query related tds deducted on pf withdraw

TDS 893 views 9 replies

I was withdraw my EPF & Pension Fund which A/C was open on 26-May-2008 and continue Till 10-sep-2011 .After I will change my job but did not transfer my PF . Now I was withdraw my EPF & Pension Fund almost after 7 Years of A/C opening .

But EPFO was deduct TDS from my PF at 10 percent because PAN & Form-15G/H not submitted with withdrawal form  .

My Query is that
1) Is amount received from PF & Pension amount is taxable , If So then how much because my current tax slab is 30% ?

2) Is there is any way this amount is converted into not taxable means reinvest or transfer this amount to existing PF A/C after withdraw?

Replies (9)

Yes its taxable and they deduct TDS. TDS is applicable on EPF withdrawal where accumulation (balance) is more than Rs 30,000 and the EPF member (Employee) has worked less than Five years. You could have transfered to next organization to save TDS and get 5yr rule satisfied. You need to submit 15G/H for exception and update PAN no with them 

I agree with KAARDAATA completely.TDS will be deducted at 10% irrespective of your current income. Also since it was not transferred the entire amt is taxable. You also need to submit PAN to avoid getting TDS deducted at max rate of 34.608%.You cannot submit Form 15G/H as you said you are in the 30% tax bracket. And 15G/H is to be submitted when you earn income below the basic exemption limit

What is net org ?

I was recently withdraw my EPF & Pension Fund , Now how I transfer this amount to existing PF (current company ) ?
 

It cannot be transferred to your existing pf now. It was given to you an option of either withdrawing or transferring. After withdrawal, you cannot transfer

In which section Tds would be deducted as said above?

Under Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee (with effect from 01.06.2015) i.e 10%

My Question is this if TDS deduct under section 192 A and My current tax slab is above 10%. So Is I need to pay extra tax ? if not because it already deducted under 192A then While filling my ITR in which section I will like to show this Income or no need to show in ITR it will auto calulated by Income Tax.

In the following cases we can withdrawn from pf amount before completion of 5 years. Education or marriage, medical, purchase of plot,House Loan repayment,renovation of house.. You say withdrawn for this purpose.... If you want to pay taxes segregate pf amount in to your contribution and employer contribution. You need pay taxes only employer contribution under head salary. Interest on your contribution under head income from other sources
Sorry not written above comment following cases ' exempt '


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