Friday, November 22, 2024
HomePersonal FinancePF Money Withdrawal: Fill this form while withdrawing PF money, no tax...

PF Money Withdrawal: Fill this form while withdrawing PF money, no tax will be deducted

PF Money Withdrawal: TDS deducted on withdrawal before 5 years

Tax can be avoided by submitting a declaration form

new Delhi. Employees often withdraw funds from provident funds when needed. At the same time, millions of people had also claimed to take it in the Corona period, but do you know that you can also suffer loss if you withdraw the amount of PF before a certain time. Actually, according to the rule of EPFO, withdrawal of money before 5 years has to pay tax, but today we will tell you an easy way to save it.

When TDS is deducted

If an employee withdraws his PF (Provident Fund) before the period of 5 years, then he has to pay tax at the time of withdrawal of EPF. It also depends on the amount. To withdraw more than 50 thousand rupees, 10% TDS has to be paid. Because in such a situation, the contribution of the employer comes to income from other sources. In such a situation, the interest earned by both of them is taxable. To avoid this, a special form will be required.

Also Read: Sukanya Samriddhi Scheme: Open the account for the daughter, then know the new rules

Avoid Form 15G and 15H Tax

15G and 15H is a self-declaration form. In this, a person declares that his income is less than the taxable limit. Its validity is for one year. Since there are four components of contribution to PF. These include the contribution of the employee, the amount deposited through the employee and interest on both. But by submitting this form, there is no tax on it.

 

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments