Hello Mr. Reddy!
I have a query and let me known if you can guide me. I was working in a MNC in Bangalore and after 4.8 years of service I have resigned. Now I am not employed in India. As I was withdrawing my PF, the PF trust team informed mt TDS will be 30%. I have submitted my PAN, form16 for the years of service and believe my TDS should be 10%. When inquired with them, they said as my annual salary with the company was above 10LPA and thus my TDS for PF will be 30%. Can you please let me know is this correct? I did not see this rule anywhere in PF gov site.
Thank you.
2 Answers
Hi,
EPF full withdrawals within 5 year service period is a TAXABLE income. So, they are right. The income is chargeable to tax as per our income tax slab rate.
In case, your taxable income for the said Financial year falls under different slab rate, you can claim REFUND by filing your income tax return (ITR).
Kindly read :
https://www.relakhs.com/epf-withdrawal-tds-applicable-new-rules/
https://www.relakhs.com/misconceptions-on-tds-tax-deducted-at-source/
Thanks for your response, Mr. Reddy! Does this mean if I claim my PF amount (PF amount comes only under 5 lakhs) next financial year (2018-2019) I will taxed to 10% as my annual income for next financial year is less than 10LPA. I do not have other source of income in India. Please let me know this option is possible.
Hi,
As you have stopped contributing to EPF scheme, your service period will not increase by just postponing your full withdrawal claim.
Also, kindly go through this article, can give you more clarity on tax implications....
https://www.relakhs.com/epf-interest-income-withdrawals-taxation/
Please login or Register to submit your answer