TDS on EPF Balance withdrawals Rules/Guidelines
Contribution towards an EPF account provides a benefit to
individuals by way of a deduction under Section 80 C. It would also be good to
know what would be the income tax implications of EPF withdrawal.
Interestingly, EPF withdrawal is taxable under certain circumstances and exempt
under the certain circumstances.
The following table will help
you easily understand the taxability on withdrawal of EPF:
|
Serial No
|
Scenario
|
Taxability
|
|
1
|
Amount withdrawn is
< Rs 50,000 before completion of 5 continuous years of service
|
No TDS.
However, If the
individual falls under the taxable bracket, he has to offer such EPF
withdrawal in his return of income
|
|
2
|
Amount withdrawn is > Rs 50,000 before completion of 5 years of
continuous service
|
TDS @ 10% if PAN is furnished;
No TDS in case Form
15G/15H is furnished
|
|
3
|
Withdrawal of EPF after 5 years of continuous service
|
No TDS.
Further, the individual
need not offer the same in the return of income as such withdrawal is exempt
from tax
|
|
4
|
Transfer of PF from one account to another upon a change of job
|
No TDS.
Further, the individual
need not offer the same in return of income as it is not taxable.
|
|
5
|
Before completion of 5 continuous years of service\ if
employment is
terminated due to employee’s ill health
The business of the
employer is discontinued
or the reasons for
withdrawal are beyond the employee’s control
|
No TDS.
Further, the individual
need not offer the same in the return of income as such withdrawal is exempt
from tax
|
Aadhaar Linking Deadlines For These 6 Services Are Fast Approaching
According to the government’s mandate, you have to link your Aadhaar number with various key documents and services to continue using them. The deadlines for doing so are fast approaching, therefore, if you haven’t done it yet, it’s time to get a move on. Read on to find out how to go about the linking process.
PAN
You should visit the Income Tax website, enter your PAN and Aadhaar details, and complete the authentication process
You should visit the Income Tax website, enter your PAN and Aadhaar details, and complete the authentication process
Bank account
You can link your bank account with your Aadhaar at a bank branch, or using Internet or mobile banking facilities. To do it through Internet banking, log in to your online banking account and click on the ‘Update Aadhaar’ link. Enter your Aadhaar details and submit it. Use the OTP sent to your registered number to complete the process.
You can link your bank account with your Aadhaar at a bank branch, or using Internet or mobile banking facilities. To do it through Internet banking, log in to your online banking account and click on the ‘Update Aadhaar’ link. Enter your Aadhaar details and submit it. Use the OTP sent to your registered number to complete the process.
Mutual fund folio
CAMS and Karvy Computershare offer an online facility for linking your Aadhaar to your mutual fund account. Go to the CAMS or Karvy website and click on the ‘Link Your Aadhaar’ tab. Follow the steps to fill in the form and submit it, then enter the OTP generated and sent to your registered mobile number to complete the linking process.
CAMS and Karvy Computershare offer an online facility for linking your Aadhaar to your mutual fund account. Go to the CAMS or Karvy website and click on the ‘Link Your Aadhaar’ tab. Follow the steps to fill in the form and submit it, then enter the OTP generated and sent to your registered mobile number to complete the linking process.
Deadlines to watch out for
|
Service
|
Deadline for
Linking
|
What will
happen if you fail to link?
|
|
Banking
|
31st December 2017
|
Your
Bank accounts will be blocked.
|
|
PAN
|
31st December 2017
|
Your Income Tax
returns will not be processed.
|
|
Mutual
Funds folio
|
31st December 2017
|
Your
account will cease to be operational.
|
|
Insurance
|
31st December 2017
|
Your Insurance
policies will become inaccessible.
|
|
Post
Office schemes
|
31st December 2017
|
Your
accounts will be blocked.
|
|
Mobile
Number
|
6th February 2018
|
Your Phone number will
be deactivated.
|
Insurance policiesYou can link Aadhaar to your insurance policies by logging on to the website or visiting the customer service department of your insurance provider. In most cases, you are only required to provide your policy number and date of birth for the verification. Once verified, you will be asked to update your Aadhaar number. At present, only LIC, SBI Life Insurance, ICICI Prudential Life Insurance and Max Life Insurance offer online Aadhaar linking services.
Post office schemes
Aadhaar linking is mandatory for opening or holding a Post Office account or investing in small savings schemes like NSC and PPF. To do this, log on to the India Post website, download the Aadhaar linkage form, fill it up and submit it to the post office where you hold an account.
Aadhaar linking is mandatory for opening or holding a Post Office account or investing in small savings schemes like NSC and PPF. To do this, log on to the India Post website, download the Aadhaar linkage form, fill it up and submit it to the post office where you hold an account.
Mobile number
Visit a store or service centre of your mobile service provider or call their customer service to request Aadhaar linking
Visit a store or service centre of your mobile service provider or call their customer service to request Aadhaar linking
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