AMENDMENTS IN SECTION 192A BY FINANCE BILL 2016
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 words “fifty thousand rupees” shall be substituted with effect from the 1st day of June, 2016.
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CA. Rahul Gupta
Contact No.: 9999907579, 011-22817758