I had a service period of more than 5 years(Multiple companies) and currently I'm unemployed for more than 6 months. I want to withdraw my pf (>4 lakhs) , so am I eligible to fill form 121 if not how can i avoid tds ?
Hi,
👉 If your total EPF service period across all employers is more than 5 years, EPF withdrawal is generally tax-exempt, subject to meeting the applicable conditions. In such a case, TDS may not be applicable merely because the withdrawal amount exceeds ₹4 lakhs.
👉 Form 121 is generally meant for declaring that your tax liability is NIL and to avoid TDS where applicable. Whether you need to submit Form 121 depends on your specific EPF withdrawal case and EPFO requirements.
👉 Before proceeding, please verify your total eligible service period in your EPF records/passbook and the reason for withdrawal. If the cumulative service is indeed more than 5 years, the tax treatment may be different from someone withdrawing before completing 5 years of service.
👉 However, one important point is that if your EPF account continues to earn interest during a non-contributory period (when no PF contributions are being made), such interest may be taxable as per the applicable tax provisions.
Related reference:
- https://www.relakhs.com/epf-interest-income-withdrawals-taxation/
- https://www.relakhs.com/epf-ppf-nps-withdrawals-tax-rules/
