How to test & confirm TDS on EPF withdrawal

I’m working at the moment in a PSU and we have now solely NPS. In my earlier employment, I used to be coated beneath EPF and I labored there just for 3 years, that means I must pay tax for withdrawal. But each time I submitted the declare kind, I received an error message “The Name within the EPF doesn’t match with the identify within the Income-tax database” and due to this, I’ll need to pay round 33% of the quantity as tax if I submit the request for the reason that withdrawal quantity is larger than Rs.50000. What to do now to get the quantity claimed by paying TDS of 10% solely?

— Name withheld on request

You must get the identify checked in your Provident Fund and your PAN card. If there’s any discrepancy, then it must be rectified to make sure the identify matches in each data. At the identical time, the PF withdrawal is absolutely taxable as you haven’t accomplished 5 years of steady service. And whereas it’s comprehensible to get PF deducted at a decrease tax price, you might be liable to pay the taxes as per your marginal price of tax and the TDS even when deducted at 10% is to be decreased out of your marginal price of tax.

I want to inform you that I retired in February 2019. I acquired the ultimate fee of EPF on 11.7.2019. I simply want to enquire as as to whether the ultimate fee of EPF can be taxable? As I’ll file my earnings tax return for FY20.

— Name withheld on request

In your case what’s essential is the interval of steady service i.e., when you have retired after completion of at the very least 5 years of steady service and it will embody any change in employment through the mentioned interval of 5 years then the total and last fee of PF shall be thought of as tax free.

Surya Bhatia is managing companion of Asset Managers. Queries and views at [email protected]

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