EPF Withdrawal Rules 2024: Big news! You may have to pay a heavy tax of 20% on withdrawing money from PF account, know why?

EPF Withdrawal: Tax legal responsibility additionally arises on withdrawal of money from EPF, some situations are relevant on this additionally. But there may be such a state of affairs that you just may have to pay a big tax of 20 p.c.

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EPF Withdrawal: Employees can put together their retirement fund with the Employee’s Provident Fund Scheme run by EPFO. In this regard, EPFO units some strict situations for withdrawing money from this fund. However, subscribers nonetheless have the choice to make EPF withdrawal by following the situations. But withdrawal of money from PF additionally creates tax legal responsibility, some situations are relevant on this additionally. But there may be such a state of affairs that you just may have to pay a big tax of 20 p.c.

Tax guidelines on EPF Withdrawal

If the contribution from an worker’s wage goes into the EPF account repeatedly for five years, then EPF Withdrawal turns into 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 monetary 12 months. If an worker withdraws greater than Rs 50,000 earlier than 5 years, TDS is deducted on it. By the best way, know that if an worker has given his PAN particulars to EPFO, then 10% TDS will likely be deducted on his withdrawal, whereas if an worker withdraws money with out giving PAN card particulars, then he’ll have to pay 20% TDS. If the worker provides Form 15G/15H then no TDS will likely be deducted on it.

PAN Card particulars required

So you discovered that in case your PAN particulars will not be with EPFO then you definately may have to pay extra tax on EPF withdrawal. In such a state of affairs, please replace your particulars on the EPFO portal.

Which paperwork are required for EPF Withdrawal?

• UAN
• Bank account info of EPF subscribers
• ID and deal with proof
• Canceled test with account quantity and IFSC code

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