TDS on Employee Provident Fund withdrawal 2019

EPF withdrawal on its maturity is tax-free. But to savor the primary objective of EPF which is to provide social security during retirement by monthly savings in work term certain provisions are in place when TDS is deducted. These provisions are:



  • TDS is deducted when the withdrawal is before 5 years of service and more than Rs. 50,000.
  • In case the amount is transferred from one EPF to another EPF account, no TDS is deducted.
  • In case of termination of employee’s service, discontinuation of business by the employer, or discontinuation due to ill health along with PAN, Form 15G/15H and Form 19 is to be submitted in order to avoid TDS deduction.
  • In case of Form 15G/15H is submitted when more than Rs. 50,000 is withdrawn before 5 years of service then TDS will not be deducted.
  •  In case no PAN is furnished then TDS @ 34.608% is levied.
  • When PAN is furnished but not Form 15G/15H then TDS is deducted @10%.
  • In specified circumstances after 5 years of service where EPF withdrawal is allowed TDS is not applicable.

Additional Reading:-TDS on EPF withdrawal 2019

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