30% tax deducted from PF withdrawal (reflected in 26AS), how to claim refund?

Dear Sir,

PF withdrawal within 5 years of service is fully taxable as per your slab rate .

You can compute your tax liabilities and claim the refund while filing ITR if any.

We may assist you in the same.

- As it is withdrawn before completing 5 years of service. 5 years of service includes previous employer service also if rendered in continuity. Please check if it applies to you otherwise it is fully taxable and you can relief u/s 89(1). I may assist you in calculation of the relief amount.

Hello,

Withdrawal from EPF before the completion of five continuous years of service is taxable. The five years of service can be completed either with one employer or more than one.

Tax refund would depend upon your overall tax liability as per slab rates. You can contact us directly or take a phone consultation for computation of tax.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Hi

If you have not completed 5 years of continuous service at the time of withdrawal of PF amount, it would be taxable.

You may claim the TDS when you file the income tax return for the respective FY in which withdrawal is made and 26AS statement shows credit. Refund, if any, after computation of taxes, shall be granted.

PF withdrawal is taxable if withdrawn before 5 years but they should have deducted 10% TDS if its reflecting in your 26AS. You can claim a refund only while filing your return for FY 2019-20.

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Thank you.

Hello Sir,

If EPF is withdrawn before the completion of five years of subscription, i.e., continuous service of five years, TDS (tax deduction at source) would be applicable and such withdrawal becomes taxable under the Income-tax Act. However, if the employee finds another job and the total PF balance is transferred to the new PF account maintained by the new employer, the PF is considered to be continuous service. There should not be any gap in contribution to PF to avail of the continuous service clause. 

TDS is deducted @ 10% on EPF balance if withdrawn before 5 years of service.

If withdrawal amount is less than Rs 50,000 no TDS is deducted.

Remember to mention your PAN at the time of withdrawal. If PAN is not provided TDS shall be deducted at highest slab rate of 30%.

You can submit Form 15G/Form15H if tax on your total income including EPF withdrawal is nil. TDS is not deducted if Form 15G/Form 15H is submitted.