Due to the need of money in the corona crisis, people are withdrawing money from the PF account, but doing so before the stipulated time is tax deducted. A form can be filled to save it.
In Corona era, most people are in need of money these days. In such a situation, they are withdrawing money from the PF account, but if you withdraw the amount of PF money before a certain time, you may have to pay income tax. According to the rule of EPFO, if you withdraw money before 5 years, you may suffer loss. In such a situation, we will tell you an easy way through which you can avoid the affair of tax.
Taxes are deducted on premature withdrawals
According to the rule of EPFO, if an employee withdraws his PF (Provident Fund) money before the period of 5 years, then he has to pay tax. They are decided on the basis of amount limit.
TDS is made on more than 50 thousand
According to the rules, if an employee withdraws more than 50 thousand rupees from a PF account before the scheduled time, then 10 percent TDS has to be paid on it. This amount is considered in the income from other sources of the employer. In such a situation, the interest of both of them is taxable.
These two forms can work
For withdrawing PF money, you can submit Form 15G and 15H for not having to fill tax. This is a self-declaration form. In this, the person declares that his income is less than the taxable limit. Since the PF includes the contribution of the employee, the amount deposited through the employee and interest on both. In such a situation, tax is not required to be submitted by submitting this form.
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