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

manunair
Dear All, Please let me know, will TDS be deducted on PF withdrawal?
I applied Form19 and Form 10C for PF withdrawal on the EPFO portal with Form15G, 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.
loginmiraclelogistics
Pl.to thru' this links-
https://www.citehr.com/619683-if-i-w...ount-will.html and other links appearing on to your screen to the right.
TDS on withdrawal of PF - limit Rs.50000 from 1.6.2016
For your quick reference herewith attached a circular on this.
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Bhartiya Akhil
Dear Manunair,
Prof. Kumar has given a circular on TDS deduction on withdrawal of PF by EPFO. He has also given a link of similar discussion.
If you feel the TDS is wrongly deducted from your withdrawal, you need to ask for refund immediately.
Once the deducted TDS is remitted with the I.Tax department by EPFO, you can get it refunded from IT department only on filling IT return.
loginmiraclelogistics
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 till 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have not given the details of individual cases such as the No.of years of service, the reason for withdrawal, amount withdrawn etc & whether all of you got PAN. Ofcourse, without PAN involves higher rate of TDS @ 30%. First & foremost ask them to obtain PAN which helps all to proceed further.

In case your withdrawal(s) is less than the taxable amount i.e.not more thn 50000/- you should immediately contact your PF A/c section and try to get it refunded if eligible before they remit the TDS to govt. a/c. There is a possibility to get a refund from your office itself, if the TDS is not remitted and IF the same found to be in Excess/Not deductible. Otherwise you have to wait.

Also pl.go thru' the salient features governing refund/TDS attached here for your knowledge & to see what best can be done in the circumstances.
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