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.
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