{"id":9650,"date":"2018-08-14T10:14:52","date_gmt":"2018-08-14T04:44:52","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=9650"},"modified":"2018-08-14T10:14:52","modified_gmt":"2018-08-14T04:44:52","slug":"epf-withdrawal-tax-tds","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/epf-withdrawal-tax-tds\/","title":{"rendered":"Tax & TDS on EPF Withdrawal"},"content":{"rendered":"

EPF (Employee Provident Fund) is one of the best retirement plans offered to salaried employees.<\/strong> The deduction happens automatically, the employer makes an equivalent contribution and above all the interest earned is tax free. If the EPF amount is never dipped into and is transferred every time job change happens it would result in substantial retirement fund.<\/p>\n

But many employees willingly or by compulsion want to withdraw the EPF balance once they change job or have a longer break between jobs.\u00a0However there is some confusion on taxation and TDS of EPF. In this post we would try to clear out the confusion.<\/strong><\/p>\n

\"Tax
Tax and TDS on EPF Withdrawal<\/strong><\/figcaption><\/figure>\n

Also Read:<\/strong> How to Pay 0 Income Tax on Rs 16 Lakh Salary?<\/a><\/p><\/blockquote>\n

How is EPF Taxed?<\/h2>\n

EPF can be taxable or tax free depending on the duration of your job.<\/p>\n

EPF is tax free if it is withdrawn after 5 years of continuous service.<\/strong> <\/span>Here continuous service can be across multiple organizations but you should have transferred the EPF balance from previous organization to the current one. In case you withdrew and did not transfer the earlier balance to current organization, it would not be considered service of 5 years.<\/em> While filing income tax returns you need to put this income in exempt income.<\/strong><\/p>\n

For e.g. You have worked with your most recent employer \u201cA\u201d for 15 months, before that you worked with another employer \u201cB\u201d for 24 months and before that with employer \u201cC\u201d for 36 months. In case you had transferred your EPF from C to B while moving and then from B to A, then you satisfy the criteria of 5 Years (15 + 24 + 36 = 75 months). However if you withdrew your EPF while changing job, this would not be considered continuous service.<\/p>\n

Also Read:<\/strong>\u00a05 Ways to check EPF Balance<\/a><\/p><\/blockquote>\n

EPF is also tax free even if withdrawn before 5 years in case of any of following conditions<\/strong><\/span>:<\/p>\n