EPF Withdrawal: Tax liability also arises on withdrawal of money from EPF, some conditions are applicable on this also. But there is such a situation that you may have to pay a huge tax of 20 percent.
EPF Withdrawal: Employees can prepare their retirement fund with the Employee’s Provident Fund Scheme run by EPFO. In this regard, EPFO sets some strict conditions for withdrawing money from this fund. However, subscribers still have the option to make EPF withdrawal by following the conditions. But withdrawal of money from PF also creates tax liability, some conditions are applicable on this also. But there is such a situation that you may have to pay a huge tax of 20 percent.
Tax rules on EPF Withdrawal
If the contribution from an employee’s salary is going into the EPF account continuously for 5 years, then EPF Withdrawal becomes tax free on it. But if the contribution stops in these 5 years, then tax will have to be paid on withdrawal of money from EPF in that financial year. If an employee withdraws more than Rs 50,000 before five years, TDS is deducted on it. By the way, know that if an employee has given his PAN details to EPFO, then 10% TDS will be deducted on his withdrawal, whereas if an employee withdraws money without giving PAN card details, then he will have to pay 20% TDS. If the employee gives Form 15G/15H then no TDS will be deducted on it.
PAN Card details required
So you learned that if your PAN details are not with EPFO then you may have to pay more tax on EPF withdrawal. In such a situation, please update your details on the EPFO portal.
Which documents are required for EPF Withdrawal?
- UAN
- Bank account information of EPF subscribers
- ID and address proof
- Canceled check with account number and IFSC code
Also Read-
- Property buyers beware! Must check sellers pan status before payment to avoid heavy cost afterwards
- Axis Bank New Update: Axis Bank sent email alert to customers, check alert immediately otherwise the account can be empty
- How to calculate income tax with tax calculator? know here
