The Employee Provident Fund Organisation (EPFO) released an important notification last month regarding liabilities about the tax deducted at source (TDS) that all their members must know.
EPF is the government's retirement scheme to support an employed individual's future. That being said, any person who has invested in it can withdraw money after retirement at the age of 60 years, or even before it. However, in case a person wants to withdraw their money from the EPF account before retirement, there are a few important conditions and guidelines to follow to make the process hassle-free.
The provident fund has various tax rules for withdrawing money and a tax deducted at source (TDS) is applicable on withdrawing money before five years of service.
The government has announced a new rule on tax deductions, applicable from April 1. According to the revised guidelines, on an EPF deposit of more than ₹2.5 lakh, the interest will also be taxed. In the current financial year, employees who have an EPF account are getting an interest of 8.50 per cent on their deposits.
Here are some TDS liabilities on EPF you must know before withdrawing your money:
In case of further queries, EPFO members can login to the official website – epfindia.gov.in.