EPFO New Guidelines: Employees’ Provident Fund Organization has issued new guidelines regarding tax on the amount deposited in PF account. Let us know what is special in this guideline…
Recently, a guideline has been issued by the Employees Provident Fund (EPFO) regarding the tax on the amount deposited in the PF account. These guidelines are especially related to such employees of the private sector, whose contribution in the PF account is more than Rs 2.5 lakh in a year. This limit of contribution for government employees is Rs 5 lakh.
This is special in the new guidelines
According to the new guidelines of EPFO, if PF accounts with annual contribution more than 2.5 lakhs are not in a state of final settlement or transfer, then TDS amount will be deducted from these accounts on the day of credit of interest. At the same time, TDS will be levied at the time of transfer of PF amount from EPFO to EPFO or EPFO to Exempted Establishment, file settlement of PF account.
TDS will be applicable even on death
EPFO has said that TDS will be levied even after the death of the account holder. Explaining the reason for this, EPFO has said that it is for the living member. Along with this, like Indian workers, TDS will also be applicable to international workers.
If PAN is not linked with PF Account..
If a person’s valid PAN card is linked to the PF account, then he will have to pay TDS at the rate of 10 percent. At the same time, if the PF account is not linked with PAN, then the person will have to pay TDS at the rate of 20 percent. This means that if the PAN is not linked with the PF account, you will have to pay almost double the tax.
However, if the TDS amount remains 5000, then no deduction will be made from the credit interest in the PF subscriber’s account. However, the individual tax liability of the subscriber will continue to be towards his total tax.
At the same time, in the case of non-residents, the tax liability of 30 percent will remain in the case of non-residents whether the valid PAN is linked with the account or not.Live TV
