BooksIQTDS @ 10% on premature EPF withdrawal (service < 5 years) when the accumulated balance exceeds ₹50,000.
Key points
- The deductor is the EPFO or the employer maintaining the recognised PF.
- The trigger is withdrawal of an accumulated PF balance by an employee whose continuous service is less than 5 years.
- The threshold is ₹50,000 (raised from ₹30,000 by Finance Act 2016).
- The rate is 10%, and the no-PAN rate jumps to the maximum marginal rate (around 30%) — NOT 20%, which is specific to §192A and different from the general no-PAN provision elsewhere.
- Two exclusions yield NIL TDS: (a) withdrawal due to ill-health, discontinuation of business, or any cause beyond the employee's control;
- or (b) transfer to another recognised PF account.
- Form 15G or 15H can be furnished by the employee to claim NIL TDS where estimated total income is below the basic exemption limit.
Reference: §192A, ITA 1961 — under ITA 2025 (FY 26-27 onwards), this is §392
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