Money

How to check & verify TDS on EPF withdrawal

I’m working at present in a PSU and we’ve solely NPS. In my earlier employment, I used to be lined beneath EPF and I labored there just for 3 years, which means I might have to pay tax for withdrawal. But each time I submitted the declare kind, I received an error message “The Name within the EPF doesn’t match with the title within the Income-tax database” and due to this, I’ll have to pay round 33% of the quantity as tax if I submit the request for the reason that withdrawal quantity is larger than Rs.50000. What to do now to get the quantity claimed by paying TDS of 10% solely?

Name withheld on request

You want to get the title checked in your Provident Fund and your PAN card. If there may be any discrepancy, then it wants to be rectified to make sure the title matches in each information. At the identical time, the PF withdrawal is absolutely taxable as you haven’t accomplished 5 years of steady service. And whereas it’s comprehensible to get PF deducted at a decrease tax rate, you might be liable to pay the taxes as per your marginal rate of tax and the TDS even when deducted at 10% is to be lowered out of your marginal rate of tax.

I want to inform you that I retired in February 2019. I acquired the ultimate cost of EPF on 11.7.2019. I simply want to enquire as to whether or not the ultimate cost of EPF can be taxable? As I’ll file my revenue tax return for FY20.

Name withheld on request

In your case what’s vital is the interval of steady service i.e., when you have retired after completion of a minimum of 5 years of steady service and it will embody any change in employment in the course of the stated interval of 5 years then the complete and remaining cost of PF will probably be thought-about as tax free.

Surya Bhatia is managing associate of Asset Managers. Queries and views at [email protected]

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