Instructions for deduction of TDS on withdrawal from provident fund (FORM 19). The provisions will be effective from 01.06.2015.
The Employee's Provident Fund Organisation vide its order No. 5931 dated 21.05.2015 available on its website at Serial No. 110 (2015-16), has circulated the provisions for deduction of TDS at the time of payment of the accumulated PF balance. The provisions are mentioned below in a simplified version for your ready reference and appraisal to all the employees/provident fund members:
ii. No TDS on payment of PF withdrawal if service rendered by the member is more than FIVE years.
iii. No TDS on following reasons of leaving service:
a. Transfer of funds
b. Termination of service (ill health/Closure/Cause beyond the control of the employee)
iv. No TDS on the payment of PF withdrawal, if the employee submit his PAN along with Form 15G (in case of age below 60 years)/15H (in case of senior citizen aged 60 years and above).
• Form 15G in case of amount is more than Rs. 2,50,000 and service within 5 years will not be accepted .
• Form 15H in case of amount is more than Rs. 3,00,000 and service within 5 years will not be accepted.
# Revised Form-19 is available in all EPF offices free of cost.
TDS will be deducted at the following rates:
a. If service rendered is less than FIVE years and the Employee has submitted PAN but not submitted Form 15G/H, the rate of TDS will be @ 10%
b. If service rendered is less than FIVE years and no PAN is submitted by the member the TDS will be @ 34.608%.
for more information click here :- http://www.epfindia.com/Circulars/Y2015-16/WSU_IncomeTax_5931.pdf
