Nagesh (Working) 10 January 2012

Is tds applicable to epf???? if yes what is the %

Hi All,

I have one challange here, i am working with one company & resigned the job, when i applied the PF withdrawals, i came to know they are having PF Trust under EPF scheme. As per EPF scheme if i withdraw the PF with in 5 years then it's taxable. I have following challanges

1. I got a cheque from PF trust which is created by our company- They deducted TDS @30.03%, i have submitted all the tax declaration Form-16 last year.

2. If TDS applicable under which section they has to deduct TDS

3. My PF total amount Rs.40 K which is not exceeding the Total taxable income of Rs.1.80 lakhs per Annuam.

4. Is there any excemption up to 1 lakhs can get exemption from TDS

5. will be TDS attarcted on Employeer or employee contribution or Both.

Can any one resolve my problem,,,,,,,,,,,,

Thanks in Advance

B Nagesh

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2 Replies

Kumar Doab (FIN) 11 January 2012

Kindly look into the attachment. This may be useful.

The difference between the EPF account maintained by the EPFO and the one maintained by the companies themselves. Such EPF accounts maintained by the companies themselves are called Exempted Provident Funds. These Exempted Provident Funds are governed by Part A of Schedule IV of the Income Tax Act.

These provisions are not applicable to the EPF accounts maintained by the EPFO. There is no tax liability for that amount at any stage.

You can raise a query with your compmay asking them vide which rule TDS has been applied while your income does not fall within the preview of taxable limits.

Attached File : 704691145 pf payment tax liability.doc downloaded: 629 times

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 18 January 2012

If TDS has already been deducted and credited to Government Account, there is no way the company can refund it. If the total income including the PF refund is not taxable and or if the incidence of tax is less than the TDS and other tax payments, if any, one has to submit returns in the normal manner and claim refund. One can ask the company to give form 16 showing taxes deducted. Otherwise nothing can be achieved by asking them to quote law or any other such thing. If the company does not issue Form 16, but if one has PAN and had given it to the employer, one can ascertain all tax payments from form 26AS on the internet. Anyone having account with a bank with internet facility, can go to the bank's website and browse for Form 26AS.