It is safe to say that you are hoping to stay away from a charge on your PF withdrawal. It is significant for one to comprehend a fundamental truth that a Provident Fund or PF account is viewed as a retirement-situated speculation alternative, in any case, during a crisis, one can likewise decide on pulling out PF before the time of retirement.
In any case, there is a trick. EPFO permits withdrawal of PF before retirement yet on the off chance that you need to get the cash before 5 years of record opening, at that point TDS (Tax Deduction at Source) is applied on the withdrawal sum. The PF withdrawal decides obviously express that if the EPF/PF account is joined with PAN, the TDS allowance rates remain at 10% while on account of EPF accounts without PAN, the TDS rate remains at 20%.
Yet, there are exemptions as well. In a couple of cases, PF account holders can keep away from TDS derivation while taking out cash before five years of record opening. Pankaj Mathpal, Founder and CEO at Optima Money Managers told Mint, "In the event that the PF withdrawal sum is not as much as Rs 50,000, there will be no TDS demanded on one's PF withdrawal. In any case, on the off chance that the PF sum removed is above Rs 50,000 then the TDS becomes relevant if one's yearly pay is more than Rs 2.5 lakh."
You can likewise stay away from TDS allowance regardless of whether the PF withdrawal sum is over Rs 50,000; Kartik Jhaveri, Director — Wealth Management at Transcend Consultants told the site, "Assuming the PF account holder's yearly pay is underneath Rs 2.5 lakh, around there, one can stay away from TDS derivation by outfitting Form 15G or 15H."
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