Zee Media Bureau
New Delhi: EPFO has issued a new circular which will make PF withdrawal tax free up to a limit of Rs 50,000.
Here are some key facts that you must know:
1)The circular mainly states that the government won't deduct income tax at source or TDS on PF withdrawals up to Rs. 50,000 with effect from June 1, 2016. The earlier limit was Rs. 30,000.
2)As per the latest circular, if you withdraw more than or equal to Rs 50,000 with service less than 5 years, then:
a)TDS deduction will be @ 10% if Form-15G/15H is not submitted provided PAN is submitted.
b)TDS deduction will be @ maximum marginal rate (i.e., 34.608%) if PAN not submitted.
3)Form 15H is applicable for senior citizens (60 years & above) and Form 15G for individuals having no taxable income.
4)Those who have a continuous service period of more than 5 years or more are not required to furnish PAN and form 15G/15H along with Form no. 19.
5)For those employees whose services have ended due to poor health or causes beyond the control of the member shall not be required to submit PAN, Form No. 15G/15H along with Form No. 19. No TDS shall be deducted in such cases.