The Finance Act 2015 has Inserted a new section 192A regarding the Tax
Deducted at Source (TDS) on payment of accumulated provident fund (PF) balance
due to an employee, The provision shall take effect from July 1, 2015
(01.06.2015)
 |
For Larger Image please Click on Image
|
Where the accumulated balance due & becoming payable to an employee
participation in a recognised provident fund maintained by his / her employer
includes any amount transferred from his/her individual account In any other
recognised provident fund or / funds maintained by his/her former employer or
employers, then, 'in computing the period of continuous service for the
purposes of clause
(I) or clause (Ii) the period or periods for which such employee rendered
continuous service under his former employer or employers aforesaid shall be
included.
Provisions related to TDS on withdrawal from Employee Provident fund
Scheme, 1952
No TDS in respect of the following Five cases:-
(1)Transfer of PF from one account to another PF account.
(2)Termination of service due to ill health of member / discontinuation of
Business by employer / completion of project / other cause beyond the contra of
member.
(3) If employee withdraws FF after a period of 5 year
(4) If PF payment is less than Rs, 30,001. But, the member has rendered service of less than
5 (Five) years.
(5) If employee withdraws amount more than or equal to Rs. 30,000 with
service less than 5 years but submits Form 15H/ 15G along with their PAN
TDS will be deducted in respect of the following 2 cases:
If employee withdraws amount more than or equal to Rs. 30,000, with service
less than 5 years, then
(a) TDS will be deduced kb 10% if Form-15G/15H Is not submitted provided
PAN is submitted.
(b) TDS will be deducted at maximum marginal rate (ie. 34.608%) if employee
fails to submit PAN.
Important Five Notes:
(1) TDS Is deductible at the time of payment.
(2) Its will be deducted under Section 192A of Income Tax Act, 1951.
(3) Form 15H is for senior citizens (60 years and above) and Form 15G is
for individuals having no taxable income Form 15G and 15H are self declaration
and may be accepted as such in duplicate.
(4) PF Members must quote PAN in Form No.- 15G or 15H
(5) Form No 15G and 15H can not be accepted if amount of withdrawal is more
than Rs. 2.5 Lac and Rs. 3 Lac respectively
No comments:
Post a Comment