Will TDS be deducted on PF withdrawal? Is this TDS refundable? What is the procedure?

Dear All,

Please let me know, will TDS be deducted on PF withdrawal? I applied Form 19 and Form 10C for PF withdrawal on the EPFO portal with Form 15G, but our employees got the settlement after deducting 10% TDS. Our employees have below 5 years of service. Some employees got the full amount, and some employees got after deducting TDS. Is this TDS refundable? What is the procedure? Kindly reply.

Please go through these links:

- https://www.citehr.com/619683-if-i-w...ount-will.html
- Other links appearing on your screen to the right.

TDS on withdrawal of PF - limit Rs. 50,000 from 1.6.2016. For your quick reference, a circular on this is attached herewith.

Dear Manunair,

Prof. Kumar has issued a circular regarding TDS deduction on the withdrawal of PF by EPFO. He has also provided a link to a similar discussion. If you believe that the TDS has been incorrectly deducted from your withdrawal, you should request a refund promptly. Once the deducted TDS is submitted to the Income Tax department by EPFO, you can only obtain a refund from the IT department by filing your IT return.

Thank you.

Hi Manunair,

It's understood that the withdrawals have been processed during the current financial year, i.e., 2020-21. Probably, you'll have to wait until you file your IT Return with the support of Form 16 from your PF office. I suppose you are raising this query for your group of employees, but have not provided the details of individual cases such as the number of years of service, the reason for withdrawal, amount withdrawn, etc., and whether all of you have PAN. Of course, without PAN, it involves a higher rate of TDS at 30%. First and foremost, ask them to obtain PAN, which helps all to proceed further.

In case your withdrawal(s) are less than the taxable amount, i.e., not more than Rs. 50,000/-, you should immediately contact your PF A/c section and try to get it refunded if eligible before they remit the TDS to the government account. There is a possibility to get a refund from your office itself if the TDS is not remitted and if the same is found to be in excess/not deductible. Otherwise, you have to wait.

Also, please go through the salient features governing refund/TDS attached here for your knowledge and to see what best can be done in the circumstances.