Tax on PF withdrawal : Calculate TDS on EPFO or PF

Tax on PF withdrawal

You are withdrawing your EPF amount before 5 years of service then you have to pay the tax on the amount.This rule is made by the government and all the employees of the company have to follow the rules.No tax will be charged if you withdraw your EPF amount after completion of 5 years of your service.The amount withdrawn from PF account after 5 years of service was fully tax exempted.Government proposed to tax 40% of employee contribution and this rule will be implemented from 1sth April 2016.You are withdrawing your EPF amount before 5 years of service then you have to pay the tax on the amount on the Provident Fund account.

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You can check your EPF claim status on the official EPFO portal.Everything is keep secured and it is very easy to know your EPF claim status.EPFO is also upgraded with the latest technology.It is offering many types of offline and online facilities for employees and employers..EPFO rule that any company who having more than 20 employees in the company than they have to deduct EPF from salary of employees and follow all the rules and regulations which are created by the government.You are withdrawing your EPF amount before 5 years of service then you have to pay the tax on the amount.No tax will be charged if you withdraw your EPF amount after completion of 5 years of your service.

TDS Calculation on EPF

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.You are withdrawing your EPF amount before 5 years of service then you have to pay the tax on the amount on the Provident Fund account but there are some exceptions that the tax will charged 0% on withdrawing.Firstly you have to withdraw your PF than you have to download the PF withdrawal form.And the exceptions are given below:

  1. If the PF amount is transferred from one PF account to another PF account
  2. If the employee is suspended from job due to medical reasons / closure of company by employer / completion of project / other conditions beyond the employee’s control
  3. Provident  amount is less than or equal to the Rs.30,000
  4. If the PF amount is equal to the Rs.30,000 than you have to submit PAN and Form 15G/15H

Before 5 Years

  1. Tax on PF withdrawal will be charged @ 10% if PAN is submitted but Form 15G/15H not submitted if the amount equal to or more than Rs.30,000
  2. If no PAN is submitted then the tax will be charged @ 34.608%

Tax will be deducted by the government and each company of India have to follow all the rules and regulations of the company.Employees can know the EPF claim status just only in a few seconds.They don’t have to go to the EPFO office for knowing their EPF claim status.You can check your EPF claim status on the official EPFO portal.The tax on PF will be deducted at the time of the withdrwal of the PF and. Form 15H is subscribed for senior citizens whose are equal to or above 60 year and Form 15G is subscribed for individuals without taxable income.This is compulsory to fill the PAN number in both forms otherwise there form will be rejected.

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