EPFO: Know When TDS is Applicable On EPF Withdrawal

When an employee reaches the age of 58 years, his EPF account matures. If an employee remains unemployed for 60 consecutive days, then his EPF account amount is paid in full to the employee and that amount is tax-free. However, if the employee withdraws the amount before maturity while in service, then Tax Deduction at Source (TDS) will be applicable.

Although TDS is deducted on withdrawal within 5 years of opening a PF account, but apart from this, there are many occasions when you have to pay TDS. Let us know when and under what circumstances TDS is deducted and how it can be avoided.

Know when TDS is deducted on EPF and when it is not

1.) PF fund transfer from one account to another.

2.) On termination of service due to illness of a member or withdrawal after leaving the company.

3.) If an employee withdraws his PF after a period of five years.

4.) If Form-15G/15H is not submitted but PAN is submitted, TDS will be deducted at the rate of 10%.

5.) If an employee fails to submit PAN, TDS will be deducted at the maximum marginal rate (34.608 percent).

6.) TDS is deducted as per section 192A of the Income Tax Act of 1961.

    3 thoughts on “EPFO: Know When TDS is Applicable On EPF Withdrawal”

      1. વિઠ્ઠલ ભાઈ . જે.માછી

        તા.27/12/2022ના રોજ મારા ઈપીએફો.મા મારી જોઈન્ટ તારીખ સુધારવા આપેલ છે ઓનલાઈન ડોક્યુમેન્ટ આપેલછે.ઓફીસ માં પણ આપેલછે..પણ હજુ સુધી સુધારવા મા‌ નથી આવી….

    1. Why government killing midle class on one time instead of killing in another another ways when you receive salary than Tax deduction, when you take any services than pay to Tax if you buy anything than Tax if you eat in restaurants than Tax if you purchase any electric items than Tax now on your Epf also. Sab choor hai in short.
      Maar lo jitna marna hai midle class ka

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