Sunday, 20 March 2016

Amendment in section 192 A Withdrawal of EPF


                                                    Presented By:                                                                          CA RAHUL GUPTA

History of Section 192A

The Finance Act 2015 had Inserted a new section 192A regarding the TDS on payment of accumulated provident fund balance. The provision had inserted with effect from 01.06.2015

EPF Withdrawal >=Rs.30000

 a)   After 5 Years  (No TDS)

 b)   Within 5 Years  Pan Given & Form 15G/15H submitted then No TDS but if Pan Given          &  Form 15G/15H not submitted then TDS @ 10%

       If No Pan then TDS @34.608%

EPF Withdrawal < Rs 30000

  a)   No TDS in this case

TDS shall not be deducted In respect of the following cases-- 
  • Transfer of PF from one account to another PF account. 
  • Termination of service due to ill health of member, discontinuation/contraction of business by employer, completion of project or other cause beyond the control of the member. 
  • If employee withdraws PF after a period of five years of continuous service, including service with former employer. 
  • If PF payment is less than Rs. 30,000/-- but the member has rendered service of less than 5 Years. 
  • If employee withdraws amount more than or equal to Rs, 30000, with service less than 5 years but submits Form I5G/15H along with their PAN.

Amendment in Section 192A

Now in section 192A of the Income-tax Act, in the first proviso, for the words “thirty thousand rupees”, the wordsfifty thousand rupeesshall be substituted with effect from the 1st day of June, 2016.


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      (Disclaimer:  The analysis may not be entirely correct for reader to reader due to different interpretations by different readers. The readers are advised to take into the consideration the prevailing legal position before acting on any of the comments in this reply. We shall not be responsible for any loss caused based on this interpretation.

Thank You !!

CA. Rahul Gupta
ACA, B.Com

 Contact No.: 9999907579, 011-22817758

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