EPF Withdrawals : New Provisions & Rules related to TDS

EPFO (Employees Provident Fund Organization) has issued a new circular relating to applicability of TDS (Income Tax deduction at Source)  on EPF withdrawals. These new provisions are effective from 1st June, 2015. TDS is applicable on EPF withdrawal where accumulation (balance) is more than Rs 30,000 and the EPF member (Employee) has worked less than Five years.

(Budget 2016-17 update : In case of payment of accumulated balance due to an employee in EPF, the TDS limit is being raised from Rs 30,000 to Rs 50,000. So, TDS is not applicable if the PF withdrawal amount is less than Rs 50,000. This new TDS thresh-hold limit will be effective from 1st June, 2016 onwards. Click on the below image to download EPFO’s latest notification on this new amendment.)

EPF withdrawal TDS limit increased from Rs 30000 to Rs 50000 EPF notification with effective from 1 june 2016 pic

As per EPFO’s circular, “the Finance Act, 2015 (20 of 2015) has inserted a new section ‘192A’ regarding the payment of accumulated provident fund balance due to an employee. The provision shall take effect from June 1, 2015.”

EPF Withdrawals – Provisions related to TDS

TDS is not applicable in the following cases;

  • On Transfer of PF from one account to another PF account (EPF A/c) .
  • On Termination of service due to ill-health of EPF member and withdraws his/her accumulation.
  • On discontinuation of Business by the Employer or any cause beyond the control of EPF Scheme’s member (Employee).
  • If PF withdrawal amount is less than Rs 30,000 (new limit is Rs 50,000).
  • If employee withdraws amount more than or equal to Rs. 30,000/- (Rs 50,000), with service less than 5 years but submits Form 15G /15H along with his / her PAN.

TDS is applicable in the following scenarios;

  • If employee withdraws amount more than or equal to Rs. 30000/- (Rs 50,000), with service less than 5 years, then:

a) TDS will be deducted @ 10% if Form-15G/15H is not submitted provided PAN is submitted.
b) TDS will be deducted @ maximum marginal rate (i.e., 34.608%) if employee fails to submit PAN.

Below is the flowchart to understand these implications.EPF Withdrawal TDS applicable June 2015 EPF Balance - new TDS limit 50,000 from FY 2016-17

Other Important points;

  • TDS (Tax Deducted at Source) is deductible at the time of payment. TDS will be deducted under Section 192A of Income Tax Act, 1961.
  • Form 15H is for senior citizens (60 years & above) and Form 15G is for individuals having no taxable income. Form 15G & 15H are self declarations and may be accepted as such in duplicate. (Do note that not every individual or HUF can submit Form no 15 G. Only the individual / HUF, whose tax on the estimated income for the year is NIL and the amount of interest income from all the sources / securities does not exceed the minimum exemption limit, can submit Form 15 G form. NRIs can not submit Form 15G)
  • EPF Members must quote PAN in Form No.- 15G / 15H and in Form No. 19 (EPF Withdrawal Form).
  • Members who have rendered continuous service of 5 years or more, including service with former employer, shall not be required to submit PAN and Form No. 15G/15H along with Form No. 19.
  • Similarly, members whose service has been terminated due to his ill health, contraction or discontinuance of business of employer or other cause beyond the control of the member shall not be required to submit PAN, Form No. 15G/15H along with Form No. 19. In such cases, no income tax (TDS) shall be deducted as per Rule 8 of Fourth Schedule to the Income Tax Act, 1961.
  • Form Nos. 15G and 15H cannot be accepted if amount of withdrawal is more than Rs. 2,50,000/- and Rs. 3,00,000/- respectively.
  • If TDS is not applicable then it does not mean that the EPF withdrawals are not taxable. Do note that, if you withdraw your PF balance before the expiry of five years of continuous service, then it is taxable in the year in which withdrawal has happened. In addition to this, your employer’s contributions along with the accumulated interest amount will be taxed as “profits in lieu of salary”. Interest accumulated on your (employee) contributions will be taxed under the head “Income from other sources”. The tax deductions claimed on your contributions will be revoked or rolled back, and shall be liable to tax.

These new amendments may discourage pre-mature PF withdrawals and may promote long-term savings.

Latest Update (20-Apr-2016) “Govt rolls back new EPF withdrawal norms and old system will continue. The notification which was issued on 10th Feb, 2016 has been cancelled.” So, the existing rules will be continued..

Latest Update (18-April-2016) : The Minister of state for Labour and Employment (Independent charge) now decides to postpone the date of implementation of new conditions for EPF withdrawal to 1st August 2016. This was earlier planned for implementation from 1st May 2016.

Budget 2016-17 New EPF Rules : Latest News (08-March-2016) : The Budget 2016-17 proposal of levying income tax on 60% of EPF balance has been withdrawn by the government. So, no tax will be levied on PF withdrawals at the time of retirement.  The other Budget proposal to make 40 per cent of the total withdrawal from the National Pension Scheme (NPS) will however remain unchanged. 

Budget 2016 New EPF Rules : Latest News (01-March-2016)As per the Budget 2016 proposal, at the time of retirement, 40% of the EPF lump sum withdrawal is tax-exempted, 60% of the corpus is taxable as per the applicable Income Tax Slab. To avoid this, the EPF member has to invest this 60% balance in an Annuity life insurance product. The Annuity income will be Tax-free. Click here for more details..

Latest News (24-Feb-2016) : New EPF Withdrawal Rules w.e.f 10-Feb-2016. Full PF balance withdrawal is not allowed till the retirement age. Click here for more details..

Latest News : You can now submit PF new claim forms directly to EPFO office without your Employer’s attestation.New Form 31 UAN, Form 10c UAN & Form 19 UANClick here for complete details.

Continue reading other EPF related articles;

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  • PS says:

    1. If there is a gap in contribution, in which year ITR is the taxable interest income to be reported ? In year of accrual or in year of withdrawal or both are possible ?
    2. To calculate taxable period of non contribution, should exact dates be used or Wage Month can be used ? For eg. DoE from first employer is 9th of the March, gap of some months and current employer DoJ is 5th of October.
    3. If first employer worked for 15 years, gap of 2 years, then started working again, would the continuous service calculation consider the first employer also ?

  • Soundarraj C says:

    Dear Mr. Reddy, I worked in a company between the year 2010 – 2015, left the job and went to abroad. Service period was 05 years and 02 months.
    My UAN is active but the company is closed.
    Now I want to close my PF a/c and withdraw full amount but in KYC, PAN is not linked with UAN. Any TDS will be imposed if I go for claim the full amount with Form 15G, its more than 04 lakhs. Please advise. Thank you.

  • Madan Rawat says:

    My continuous service is 8 years and 7 months recently i withdrawn my pf after retirement ,PF dept has deducted 10% TDS saying that your establishment has not open new pf account after your rejoining the company after3days (AS i got retired at the age of 58 years ,but rejoined the company and there is no disruption in PF payment )
    they also said that your company has not mentioned your exit date from pf contribution now how can i claim refund of TDS

  • Sakshi says:

    I’m not eligible for 15G (my income for 2021-22 is taxable) and my PAN details are already available under KYC. I tried withdrawing on EPFO portal.
    Service < 5 years (ended in 2019)
    Amount (only PF) – 55000 approx
    PAN available
    15G – cannot attach as I have taxable income in new company
    Claim rejected – reason – Form 15G not attached.

    Please explain what can be done.

  • amit says:

    Hello sir,

    I worked for 2 company and if i calculate my total service it is

    in first company – 4 th july 2016 to 20 jun 2018

    in 2nd company – 26th june to 30th june 2021

    if i withdraw my pf is it taxable . please guide me

    • Sreekanth Reddy says:

      Dear Amit,
      What is the work exp period in 2nd company?
      Did you get the funds transferred from 1st to 2nd EPF a/c ??

      Related article : Tax Implications of EPF, PPF & NPS Withdrawals (Full / Partial) & Maturity proceeds

      • amit says:

        No Sir,

        I have not transferred the fund from 1st company to 2nd company.
        My concern is i worked for 1st company for 1 years 11 months 20 days(4 th july 2016 to 20 jun 2018) and in 2nd company 2 years 11 months 26 days (4th july 2018 to 30th june 2021). but if i consider i have contributed to epf for 5 yeas ( exactly 60 months ) but if i count day wise its 15 days less in 5 years.
        so could u pls help me to understand if i withdraw the pf is it taxable.

        • Sreekanth Reddy says:

          Dear Amit,
          Only if you consolidate the two EPF accounts then cumulative service period is counted.

          If your service period is 5 years, the total EPF claim would be tax-exempt.

          In case, for any reason, the EPFO deducts any TDS, you can claim it as REFUND (if any) by filing ITR.

  • Madan Singh Rawat says:

    I have worked in a company from 2011 to 2020 But company gave me 3 days break as my PF contribution was continued . On my retirement in 2020 company HR department by misunderstanding put my date of exit 2015
    So when I applied for final withdrawal of PF , TDS was deducted @ 10%
    Now is it possible to get the refund of TDS

    • Sreekanth Reddy says:

      Dear Madan,
      3 days break? I am unable to understand your query?

      An EPF member can now update Date of Exit online.

      1) Log in to the EPFO portal with your UAN (Universal Account Number) and password.

      2) Go to “Manage” section and click on “Mark Exit”. You will then get the option to choose your PF account number from the “select employment” dropdown menu.

      You cannot mark your date of exit before two months of leaving the company.

    • bahrath says:

      yes you can take ur tds amount 7406698205 call me

      • A K Maurya says:

        Dear madam,
        My claim is rejected by pf office with remark ” claim rejected.Amount 10 lac above please submit member detail and service through employer.
        Prior I have submitted claim on line on EPFO portal.
        My company is closed.pl suggest what to do

  • SB says:


    My service is more than 12+ years and PF accumulations as per passbook are as under:

    Employee share: 1,07,297/-
    Employer share: 32,801/-
    EPS : 58,469/-
    Total 1,98,567/-

    Further, my Aadhaar is linked and shows verified in home page of member portal. But, my PAN is linked and PAN number reflects in home page of member portal, but is not showing PAN is verified.

    Shall I apply for withdrawal even though my PAN is not verified. Will TDS be deducted in my case? Form No.15G is required?

    Kindly reply.

    • Sreekanth Reddy says:

      Dear SB,
      Even if TDS gets deducted, you can claim it as REFUND when you file your ITR, as epf claim amount is tax free if service period is more than 5 years.

  • VS says:

    I worked for same employer from Dec 2008 till Nov 2017. But I discontinued the job for some months in between, from Feb 2012 to Dec 2012.
    The current EPF account shows joining date as 01-01-2013, it is when I started the job again for the employer. I wanted to claim the EPF amount now as I am relocated our of India. As the second term of my employment is only 4 years and 11 months, will I be taxed after withdrawal? Or the EPF duration will be calculated from 2008, when I joined the employer initially? Although my currernt EPF statement does show the transfer of amount from my initial EPF account.

  • Josephine says:

    Hello Sir,
    I have a query, we have 2 staff who has joined us recently, one who was earlier working in various banks for more than 20 years. He has left his service for more than 3 years and joined us. Would he be coming under PF with us. The other whom we pay more than Rs. 25000 has joined from another company, where there was no deduction of PF, would PF be applicable to him?

  • sanjay kumar says:

    I have PF account from 2006. I left my last organization very recently. They have their PF trust. I want to withdraw my last PF amount as need it for daughter education. Organization told me that 10% TDS will be applicable for that . Is there any way to withdraw it without TDS cut because i am going to use it for education of my child .

  • Rahul says:

    Hi Sreekanth,

    This is Rahul, I have 5+ years of experience and I have withdrawn 62000 advance from my of account. Is TDS applicable for me? My worry is that UAN shows my DOJ as April 30 2015 and DOE as May 1 2015 which is one day, mistake made by our employer. But from April 2015 I have more than 5 years experience.

  • Amit says:

    I have withdrawn PF . My continued service is around 10 years but 10 % TDS has been deducted. How I can claim 10% tds which has been wrongly deducted. Should I raise grievance.

  • Milankumar Gondaliya says:

    Hi, Sreekanth,
    I have completed my employment 8+ year and I resigned. Currently I am unemployed (6month). My PF and pension total amount is 3.5 lakh. Is it taxable? Need to attached 15G?
    My Adhar is verified demographic, but while claim process it shows error of mismatch of adhar demographic details. How can solve it?

  • khalid says:

    Hi Sir,
    I am Khalid , i want to claim my pf and pension as well.
    my total pf balance is 46000 and pension amount about 20000,
    i want to know that tax is applicable on only pf amount or plus of both . either i need to fill 15G or not. please help thanks

  • Kumar says:

    Hi Sreekanth,

    I have left my job in company A (4yrs) and now working in another company B ( 10 months).
    My question is if I wanted to apply for PF withdraw after completing 5 years for some financial problems, Can I apply for withdrawal ? If yes how much I’m eligible for withdrawal ?

    Note: I have already raised request for transferring my old account to new of account.


  • Upasana says:

    Hi Sreekanth,

    My PAN details are reflecting under digitally approved KYC, but the status says NA. When I am trying to withdraw my PF amount it saying PAN not verified, please help how to get it verified in UAN portal.

    • Sreekanth Reddy says:

      Dear Upasana,
      It’s been the same case with other EPF members for the last one week or so.. looks like there is some technical issue @ EPFO UAN database. We may have to wait for sometime..

  • Dipen says:

    Hi Sreekanth, i have served a total of 5.5 years of service across 2 companies in India after which I moved out of India (5+ years now outside India). The EPF from the first company (3.5 years of service) was withdrawn and now I want to claim EPF from the 2nd service of 2 years. Pls let me know if I claim PF now will there be any TDS deduction and if yes then is there a way to avoid TDS like by filling form 15G or something else.

  • Navaram says:

    Hi Srikanth, My EPF Subscripition is more than 5years, due mismatch in aadhar name and pan card name i am unable to seed my pan card. My name in aadhar is K Navaram Kumar, in PAN card is Kommu Navaram Kumar, how to withdraw money without TDS deduction.

  • Sonali says:

    Hello sir,

    I have PF worth more than 2 lakhs, but my withdrawal request (form 19 and 10C) keeps getting rejected, each time with a different reason like Form 15G not uploaded, PAN card details not available, Certificate A/B/C/D/E not uploaded, etc.

    I’m not eligible for 15G (my income for 2019-20 is taxable) and my PAN details are already available under KYC. I tried withdrawing on Umang app as well, but they asked me to upload 15G too. Could you please advise on how I can withdraw my PF?

  • Shweta says:

    Hi Sreekanth,
    I had submitted an online claim request for my old EPF account (form 19) since I am not employed for more than a year. But the claim got rejected with below reason:

    Your Claim [ Claim Id – **** ] has been rejected due to : 1) APPLY F/13 TO TRANSFER THE AMOUNT TO SUBSEQUENT SERVICE OF ****** 2) CERTIFICATE ENCLOSED IS IMPROPER

    However, I am not able to understand the reject reason since I had applied for withdrawal but reject reason mentions transfer. Please let me know what this reject reason means and how can this be corrected.

    • Sreekanth Reddy says:

      Dear Shweta,
      Are you currently employed and contributing to EPF scheme again?

      • Shweta says:

        I am not currently employed. The contributions in this particular account were done till 2013 only. However, I have other PF account which had contributions from 2013 onwards till 2018 (from my next employer). I am not employed since 2018.

        • Sreekanth Reddy says:

          Dear Shweta,
          Suggest you to get the funds from your old EPF account to the latest EPF account (Consolidation) and then can make a full PF claim request..

  • Bhushan says:

    Dear Sir,I have completed 6 years of service.Pl.tell me form no 15 G is Required or Not.

  • Nitish says:

    Sir, my service was for 3 years, and my epf account has around 1 lakh rs including pension, employee and employer contribution. However i was terminated from my job and the reason showing in EPFO portal is “cessation of service”. my pan is not getting verified in the portal. So if i submit the online claim form, will tds be deucted from it or not ?

  • Sreekanth reddy says:

    Hi Sreekanth,

    I have withdrawn my EPFo full amount with less than 5 years experience and EPFo settled the amount 200000 but they have deducted 10% even I submitted form15 g.Will i get the deducted amount at form16 filing or not. please clarify on it.

  • jyothi says:

    hi sir, im jyothi i have apply for epf claim form-19 & form10C my service is below 2 years my amount is above 52000, my pan not taken in uan like not matched, but i linked pan with bank account number to nearest my bank branch, in bank they updated KYC like my pan. now shall i applied for epf claim without pan it is possible or not sir.

  • POONAM says:

    Hi Sir,
    I am Poonam I have claimed my EPF amount on 5-7-2019, but my PAN number is not linked with my EPF account, my service period was six years i.e., July 2013 to April 2019.
    Employee Share is Rs.58,344 , Employer share is Rs.17,842 and Pension contribution is Rs.34,946.
    I claimed the Form 19 and Form 10C.

    Can I apply for Form 15G once the amount get credited in my Bank account ?

  • Gowtham says:

    My PF claim was rejected online. Reason not mentioned clearly for PF amount but when I visited https://passbook.epfindia.gov.in/MemClaimStatusUAN/ for pension amount it was mentioned as “has been rejected due to :- F/13 TO TRANSFER FOR SUBSEQUENT SERVICE OF…” and no mention of reason for PF amount.
    My current company has created a new uan and PF number and asking not to transfer service and only to withdraw claim amount from previous company. But it was rejected when I raised online.

    Will it be due to the fact that I’m still working? Or I doubt may be only mistake is my second name in bank account is missing when compared to aadhar.

    • Sreekanth Reddy says:

      Dear Gowtham,
      Is your previous UAN linked to your Aadhaar?

    • Poonam says:

      Download UMANG app in your mobile using play store
      Then login using UAN number and click on get OTP

      View your eff pass book after that try to claim it again form 19 and form 10c one after other

  • Sanket Punewar says:

    I recently withdrew my PF Advance for illness in company where my total service was more than 5 years. The total amount claim was about 50,000 on EPFO site but only 40,000 got credited. Can you please help on why amount deducted when service was more than 5 yrs.

    • Sreekanth Reddy says:

      Dear Sanket,
      Service period is not an eligibility criteria for Partial claim towards medical treatment.
      “For the purpose of ‘medical treatment’, the least of 6 months basic wages (or) employee share with interest is allowed as partial withdrawal.””

  • Mahesh says:

    Hi…. Shreekanth
    I am working in contract based company…. I have 3 year bond with company…. So 5 years service is not possible…. Does TDS system apply on me too…. Even though I don’t have any options?

  • Shiva says:

    Hi Sreekanth,

    For online withdrawal, where should I submit the form 15g as there is no option to do it online. Should I submit by visiting the nearest pf office.? Please clarify. Thanks.

    • Sreekanth Reddy says:

      Dear Shiva,
      As soon as you submit online Claim request, immediately (next day) you can visit EPFO office and submit Filled Form 15G, PAN card copy, Aadhaar card copy & Claim acknowledgement copy to them. Kindly quote your UAN & Claim Id ref no.

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