Tax on EPF Withdrawal if less than 50,000


Recently in 2015, Government introduced a clause in Income Tax act to discourage people from Withdrawing PF Prematurely, but it provided certain exemptions like there would no tax if the PF amount is less than 30,000 and if PAN is submitted

But again in the amendment as seen here – https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y2016-2017/WSU_Amendment_ITAct_TDS_4376.pdf

EPFO made these changes

  • Increased the Tax exemption limit to 50,000
  • Member had to be in a organization for 5 years
  • PAN is submitted

All these criteria needs to be satisfied, so that your EPF withdrawal is Tax free. Incase if your EPF Withdrawal amount is more than 50,000 you will be taxed based on the criteria as denoted here

http://www.epfguide.com/epf-tax-withdrawal-less-5-years/




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