Tds amendment

Income Tax shall be deducted at source (TDS) at the following rates,if at the time of payment of the accumulated PF balance is more than or equal to Rs. 30000/-,with service less than 5 years:- 

• a) TDS will be deducted @ 10%  , provided PAN is submitted, (In case Form No. 15G or 15H is submitted by the member, then no TDS shall be deducted)
• b) TDS will be  deducted @ maximum marginal rate ({.e. 34.608%) if a member falls to submit PAN (and Form No 15G or 15H), 

TDS shall not be deducted In respect of the following cases-- 

• Transfer of PF from one account to another PF account. 
• Termination of service due to ill health of member, discontinuation/contraction of business by employer, completion of project or other cause beyond the control of the member. 
• If employee withdraws PF after a period of five years of continuous service, including service with former employer. 
• If PF payment is less than Rs. 30,000/-- but the member has rendered service of less than 5 Years. 
• If employee withdraws amount more than or equal to Rs, 30000, with service less than 5 years but submits Form I5G/15H along with their PAN

Update: Budget 2016-17 has proposed to increase the limit of Rs 30, 000 to Rs 50, 000 with effect from the 1st day of June, 2016.