If you withdraw from EPF before completing 5 years of continuous service, TDS will be deducted
Taxability .... a) Your contribution/Employee’s contribution –
This is the amount contributed by you to your EPF. This portion of your withdrawal is not taxable.
However, if you have claimed deduction under section 80C on your contribution in earlier years, you may have to pay additional tax as if 80C was not claimed by you for those years.
b) Interest on your/employee’s contribution –
This portion is taxed as income from other sources.
c) Employer’s contribution and interest on employer’s contribution –
Employer’s contribution and interest on it is fully taxable.
It is taxed under the head salary in your tax return.
When TDS is deducted on it, see an entry under salary TDS in your Form 26AS.
If withdrawal amount is less than Rs 50,000 no TDS is deducted.
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%.
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