PF Withdrawal: 5 Cases Where TDS Is Not Levied On Withdrawal From Employees Provident Fund Scheme

New Delhi: Provident Fund (PF) is one of the safest investment instruments for lakhs of working-class professionals. The amount deposited in the EPF account of an investor can be withdrawn at the time of retirement, resignation and other emergency circumstances. 

Only in the case of resignation from service (not superannuation) a member has to wait for a period of two months for withdrawal of the PF amount. 

EPFO allows its member for tax free withdrawal upon completing the time frame as laid down in the regulatory guidelines. 

In case a member withdraws his EPF and has rendered less than 5 years of service and accumulated amount is more than Rs. 50,000/, TDS shall be applicable on the following rates:-

Submission of PAN: If 15G/15H is submitted, no TDS is deducted; If 15G/15H is not submitted, TDS deducted at 10%

Non submission of PAN: TDS is deducted at Maximum Marginal Rate (34.606%)

No TDS deducted in case of: Transfer of Fund; Payment of advance; Service is terminated by employer beyond control of employee

Provisions related to TDS on withdrawal from Employees Provident Fund Scheme, 1952: No TDS will be levied in respect of the following cases:

Transfer of PF from one account to another PF account. 

Termination of service due to Ill health of member /discontinuation of Business by employer/completion of project/other cause beyond the control of member. 

If employee withdraws PF after a period of five year. 

If PF payment is less than Rs. 30,000/- but the member has rendered service of less than 5 years. 

If employee withdraws amount more than or equal to Rs. 30,000/-, with service less than 5 years but submits Form 15G/15H along with their PAN