PF Tax deduction Saving Tips for Provident Fund tds exemption

By | April 19, 2017

PF tax (Provident Fund) deduction saving methods tips, TDS Exemption on EPF latest tips by CA’s.

Provident Fund (PF)  of worker is store which is comprised of by business and representative together amid  livelihood. By and large 12% of fundamental compensation of worker stored to PF account and similar sum saved by business.

Withdrawal of Provident Fund from EPF record is not permitted while representative is still utilized. Be that as it may, on account of crisis, Employee can pull back sum from their PF account.

A representative can pull back this sum when they exchanged their employment and would prefer not to exchange Provident Fund (PF) account. There are arrangements identified with TDS when representative withdrawal from Employee Provident Fund.

In a few cases, Employee’s will be exempted to pay TDS on withdrawal of EPF sum from their record.

TDS Exemption on EPF Provident Fund PF Tax saving methods:

At point when worker exchange their old Provident Fund (PF) record to new PF account while exchanging  occupation.

At point when representative ceases his/her occupation because of Ill well being.

At point when business shut business, representative doesn’t need to pay TDS on their PF tax total sum.
On off chance that worker is on legally binding premise or chipping away at a venture, there will be o TDS when representative pulls back PF sum after fulfillment of Contract/Project.

At point when worker pulls back PF sum after consummation of 05 years of their administration.

On off chance that worker wear not finished 05 years of administration but rather pull back sum under Rs.30,000 from PF account, there will be no TDS need to pay by representative.

On off chance that representative wear not finished 05 years of administration but rather pull back sum equivalent to or more than Rs.30,000 from PF account and presents 15G/15H shape alongside their 10 digit PAN (Permanent Account Number) points of interest, there will be no TDS need to pay by worker.

In a few cases, Employee’s need to pay TDS on withdrawal of EPF sum from their record.

In event that representative wear not finished 05 years of administration but rather pull back sum equivalent to or more than Rs.30,000 from PF account, then worker need to pay TDS at 10% rate in accompanying cases.
Worker presents subtle elements of PAN (Permanent Account Number) card.

worker does not present 15G/15H Form. On off chance that representative wear not finished 05 years of administration but rather pull back sum equivalent to or more than Rs.30,000 from PF account, then worker need to pay TDS at a most extreme peripheral rate of 34.608% if there should be an occurrence of Employee neglects to present subtle elements of PAN (Permanent Account Number) card.

Note: TDS will be deducted at season of installment of PF sum under Section 192A of Income Tax Act, 1961.

Form 15:

Form 15H is for Senior subjects of 60 years or more. Form 15G – Form 15G is for Individuals of beneath 60 years and have no Taxable wage. Frame 15H/15G are self-presentation Forms.

worker must give subtle elements of PAN (If accessible) in Form 15H/15G and Form 19.

Category: TAX