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Pushparaj Naik (Lead)     15 June 2012

Reimburse tds on pf withdrawal

Dear Sir/Madam,

This is Raj, I withdrawn PF last year ,when i need that very badly for personal need. the PF accumulation was around 2.6 lakh and whopping 85K tax/TDS lavied on that !!!

I am a software professional having overall 8+ years of Exp. As a normal practise , I am a regular tax payer but TDS on my PF is quiet unexpected and i couldn't digest that. The PF money comprise my last company itself ,where i spend 4.8 years. i used to pay 1 lakh Tax every year on my salary after adusting my all savings/investments. I mean to say i cant reimburse/adjust the TDS on my PF withdrawal where my salary belongs higher slab.

By anyway, can i get back my TDS of my PF ? if not 100% of that , atleast 60-70% of that. Kindly help me on this.


 4 Replies

Vineet (Director)     15 June 2012

Are yoy Mr Naik or Mr Raj?


Anyway, the TDS deducted on your PF withdrawal was unfortunately as per law because you had completed less than 5 years with your previous employer and not transferred the PF balance to new account with next employer. Had you had completed cumulative 5 years, the entire withdrawal would have been tax exempt.

Now the withdrawal of Rs 2.6 Lakhs from PF is to be added to your taxable income of current year (year of withdrawal). You can claim credit for the TDS against your tax liability. The TDS has been deducted at maximum marginal rate of 30%. Hence if your income falls within Rs 10 lakh bracket, you may get some refund.

1 Like

Pushparaj Naik (Lead)     15 June 2012

Dear Sir, 

Thanks a lot , My name is Pushparaj Naik, people call me Naik or Raj.

My total salary as per my Form-16 issued my company shows, Rs 821566 and it also shows i paid 56864 as Income tax.

Sorry i didn't complete cumulative year of 5 years, probably i overlooked that.

Vineet (Director)     16 June 2012

Compute your taxable income by adding salary income as per form 16, PF withdrawal income and any other interest income etc. compute tax and claim tds credit as per form 16 and tds on PF withdrawal. Check your form 26AS whether entire TDS deducted is reflected there.


I am sure you will get some refund.

R RAJAGOPALAN (ADVOCATE)     24 August 2012

The facts are that you withdrew a certain amount from your PF Account, which it is presumed is PPF/GPF/EPF etc,  and tax has been deucted from the amount so withdrawn from the PF.

The reply is that tax should not have been deducted from the PF withdrawal, as the PF balance represents the deposits you made out of your salary on which you had paid tax; it is only like the money drwan from your bank account.

If it TDS has been effected from the PF withdrawal wrongly, you can claim refund by filing the return.

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