Tds on pf withdrawal

Hi,

5 years is the period of continous employment but not the tenure of PF Account.

In your case it is just short of 5 employment years.   Hence if you withdraw now, it would attract tds per new regulations.

Thanks,

Suri

Firstly, YES! TDS will be applicable on withdrawal from PF as the words of 192A state that "period of service" should be 5 yeras or more.

You will have to submit a copy of PAN along with the withdrawal application form so that TDS @ 10% is only deducted. 

Thanks Suri and Rashi for the prompt reply... Thanks a lot.

Would like to ask why the service was terminated. If not covered under 8(ii) then above replies already explained the answer

8. The accumulated balance due and becoming payable to an employee participating in a recognised provident fund shall be excluded from the computation of his total income—

 (i)  if he has rendered continuous service with his employer for a period of five years or more, or

(ii)  if, though he has not rendered such continuous service, the service has been terminated by reason of the employee's ill-health, or by the contraction or discontinuance of the employer's business or other cause beyond the control of the employee, or

(iii) if, on the cessation of his employment, the employee obtains employment with any other employer, to the extent the accumulated balance due and becoming payable to him is transferred to his individual account in any recognised provident fund maintained by such other employer.

Yes, since you have not completed 5 years of continuous service.

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