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Tax on employee provident fund withdrawal

Tax queries 268 views 1 replies

I worked for an IT company in india for 4 years and 6 months and left the company in 2014. Thereafter I have not joined any other company.

If I withdraw the EPF amount now  , do I need to pay tax on it ? If EPF is less than 5 years , is it taxable ? and what is the rate of tax ? Please clarify

Thanks

 

 

 

 

Replies (1)
Yes tax should be paid on epf withdrawal.

TDS is deducted @ 10% on EPF balance if withdrawn before 5 years of service.Remember to mention your PAN at the time of withdrawal. If PAN is not provided TDS shall be deducted at highest slab rate of 30%. You can submit Form 15G/Form15H if tax on your total income including EPF withdrawal is nil. TDS is not deducted if Form 15G/Form 15H is submitted


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