TDS on PF withdrawal before 5 years – Budget 2015 – new Section 192A
Update - May 2016 - No tax would be deducted at source for PF withdrawals of up to Rs 50,000 from June 1 2016. https://wealth18.com/no-tds-for-pf-withdrawals-of-up-to-rs-50000/
In Budget 2015, new Section 192A of Income Tax Act is proposed to deduct tax (TDS) on PF withdrawal before 5 years.
To discourage premature withdrawal of provident fund by subscribers, Union Finance Minister Arun Jaitley has proposed a tax deduction on such early closures. Under the proposed tax law (new Section 192A of Income Tax Act), provident fund withdrawal before five years of continuous service will attract a TDS (tax deducted at source) of 10%.
Changes Proposed (new Section 192A is proposed under Income Tax Act)
TDS will be deducted if the withdrawal is more than Rs.30,000.
If the PAN is updated, T...