HI ALL, Can part of the epf be deducted as TDS? if yes, then how is it possible in un-exempted unit.
From India, Phagwara
19From India, Phagwara
Hi,
EPF is retiral benefit for which we get tax exemption on our contribution.Exempted organizations (companies have EPF trusts) are deducting TDS when any employee leave the company and withdraw the money.Normally most of the EPF trusts deduct 30% of the EPF amount.Incase of Un exempted employers PF accounts are maintained by RPFC.In such cases RPFC is not deducting TDS on PF withdrawal but who ever withdraw the EPF amount should show as income in the financial year as they took IT exemption under Sec.80c.
I hope you got clarification.
Regards,
Ramanjaneya Reddy.G.K
From India, Bangalore
EPF is retiral benefit for which we get tax exemption on our contribution.Exempted organizations (companies have EPF trusts) are deducting TDS when any employee leave the company and withdraw the money.Normally most of the EPF trusts deduct 30% of the EPF amount.Incase of Un exempted employers PF accounts are maintained by RPFC.In such cases RPFC is not deducting TDS on PF withdrawal but who ever withdraw the EPF amount should show as income in the financial year as they took IT exemption under Sec.80c.
I hope you got clarification.
Regards,
Ramanjaneya Reddy.G.K
From India, Bangalore
If TDS is already being deducted from my salary then
TDS from my EPF would be justified?
can Tax be deducted from the EPF payable before it is being (or at the time being) deposited vide Bank challan? ( if my epf be 1000, can the establishment deduct 30% as above said from epf being deposited)
From India, Phagwara
TDS from my EPF would be justified?
can Tax be deducted from the EPF payable before it is being (or at the time being) deposited vide Bank challan? ( if my epf be 1000, can the establishment deduct 30% as above said from epf being deposited)
From India, Phagwara
no they cannot do that they should be depositing full epf amount in ur example 1000 should be deposited apatt from this this epf deducted amount will be considered under 80CC for tax exemption
From United States, Ogden
From United States, Ogden
sir, give the reason of the first one.(TDS from my EPF would be justified?) EPF is TAXable if it is more then one lakh?
From India, Phagwara
From India, Phagwara
OK Parsad,
if I am providing services to a company and getting paid as employee, for my services paid the company is deducting TDS then is it justified for the un-exempted company to Deduct TDS on my EPF?
( I am not good at Income Tax Law, so rectify if something is wrong).
From India, Phagwara
if I am providing services to a company and getting paid as employee, for my services paid the company is deducting TDS then is it justified for the un-exempted company to Deduct TDS on my EPF?
( I am not good at Income Tax Law, so rectify if something is wrong).
From India, Phagwara
Hi Atom,
When you are earning the salary your gross salary will be considered as income.For Example your gross salary is Rs.50000 pm and Basic Salary is Rs.20000 on which PF deductions are Rs.2400.Since income tax should be on Gross salary they should deduct IT on Rs.50000 but employer will deduct only on Rs.47600 since your PF amount is exempted from IT(Since it is retiral benefit).But when you withdraw before retirement that will be considered as normal income,hence TDS will be there on the withdrawal.
Incase if you are not falling under 30% IT slab,you can claim back from the IT department by submitting your IT returns with the help of TDS certificate(issued by PF trust) and Form-16.
Regards,
Ramanjaneya Reddy.G.K
From India, Bangalore
When you are earning the salary your gross salary will be considered as income.For Example your gross salary is Rs.50000 pm and Basic Salary is Rs.20000 on which PF deductions are Rs.2400.Since income tax should be on Gross salary they should deduct IT on Rs.50000 but employer will deduct only on Rs.47600 since your PF amount is exempted from IT(Since it is retiral benefit).But when you withdraw before retirement that will be considered as normal income,hence TDS will be there on the withdrawal.
Incase if you are not falling under 30% IT slab,you can claim back from the IT department by submitting your IT returns with the help of TDS certificate(issued by PF trust) and Form-16.
Regards,
Ramanjaneya Reddy.G.K
From India, Bangalore
But you should know that PF limit is 6500(wages), so it must not exceed 780.00 (as 12% of 6500). There is some clause which says that beyond 6500 limit the pf deducted be of only employee's part (employer contribution will remain same). It is called voluntary PF contribution by the employee.
now the retrial benefit thing :
PF deduction's 1/3 part is for the retrial benefit. So remaining 2/3 part is Taxable and if it is more than 1 lakh, it is taxable.
Is there time period specified with the TDS deduction (with regard to years of services)
From India, Phagwara
now the retrial benefit thing :
PF deduction's 1/3 part is for the retrial benefit. So remaining 2/3 part is Taxable and if it is more than 1 lakh, it is taxable.
Is there time period specified with the TDS deduction (with regard to years of services)
From India, Phagwara
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Tds on EPF.pdf
EPF Withdrawals - New Provisions & Rules related to TDS.pptx