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Jul 8, 2024 · TDS is deducted @ 10% on EPF balance if withdrawn before 5 years of service, and the amount is above Rs.50,000. Remember to mention your PAN at the time of withdrawal. If PAN is not provided, TDS shall be deducted at the rate of 20%. You can submit Form 15G/Form 15H if the tax on your total income, including EPF withdrawal, is nil.
The interest earned over and above 9.5% is taxable as ‘Income from other sources’. Tax at the time of withdrawal. The withdrawal amount of an account consists of the investment/principal portion and the interest earned on it. The taxability of the two differs on the basis of the time of withdrawal. If the withdrawal is made before 5 years ...
May 28, 2021 · Raote says, "If the withdrawal from EPF account is made after working for 5 continuous years, then such withdrawal is exempted from tax. On the other hand, if the continuous service is less than five years, then the amount withdrawn becomes taxable in the hands of an individual. Further, if the withdrawal amount exceeds Rs 50,000, then TDS will ...
- Preeti Motiani
Oct 24, 2023 · If the withdrawal amount is less than INR 50,000, then no TDS is cut. The applicable TDS rate is 10% on withdrawals if the PAN details are furnished. In case PAN details are not provided, then the rate is 34.608%. EPF withdrawals made before five years of service are tax-free under the following scenarios:
Oct 16, 2024 · If a person's (other than the employer's) contribution to the Recognised Provident Fund Account exceeds Rs. 2.5 lakhs in a year, the amount of interest earned on the contribution in excess of Rs. 2.5 lakhs will not be exempt; it will be taxable, and tax on such interest income will be payable on withdrawal of the lump sum amount.
EPF Withdrawal Taxability. EPF withdrawal is tax-free when an employee has contributed to the EPF account for five consecutive years. If there is a break in five years' contributions, the EPF withdrawal amount becomes taxable for that financial year. TDS is deducted if an employee withdraws EPF amount before five years and the amount is above ...
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Are EPF withdrawals taxable?
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How to withdraw PF if a member is not eligible?
May 27, 2024 · TDS (Tax Deducted at Source) is deducted at 10% on EPF withdrawals over ₹50,000 before five years of service, provided PAN is submitted. Unrecognized Provident Fund: Withdrawals from an unrecognized provident fund (not approved by the Commissioner of Income-tax) are taxable. Transfer from Recognized to Unrecognized PF:
