Can IT return be filed against TDS on premature withdrawal of EPF

Vikas Malik 1
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Recently, I withdrawn my EPF deducted by previous employer(4.5 Years since I left). I received the amount but after deduction of 10% of amount as TDS. So, I tried to do some research on same topic and found out that IT department has introduced a new rule that if EPF has been withdrawn before 5 years of maturity period then TDS will be deducted.

But question is "from when 5 years starts"?

If it is calculated from day of PF deduction, most of my PF balance has already completed 5 years and I would require to file return to get the refund. Can I do that? If yes...how ?

tax-deduction provident-fund income-tax-return tds epf-withdrawal epf
1 Answers

Income tax is payable if EPF balance is withdrawn before five years of continued service (can be with more than one employer but account has to be transferred in that case).

Following components have to be added to person's taxable income to compute tax liability:

  1. Interest paid by EPF department on employee contribution.
  2. Interest paid by EPF department on employer contribution.
  3. Amount deposited as employer contribution.

Read a similar thread here: How to calculate tax on EPF withdrawal

Pankaj Batra5212

Thanks Pankaj, I got it.

Vikas Malik•

Hi ,

I worked for 2 years in a company and when I left it and withdraw my PF then 30 % TDS got deducted by saying before 5 years if someone left the company TDS would be deducted . But My salary was not taxable . My company issued a form 16 to me and said that you can claim with Income tax department for refund.

Can any one tell me procedure that how I can refund ? I didn't fill the ITR before .

Thanks

Nishant__sharma•

You should file income tax return and show TDS in it. Extra tax deducted would be refunded by income tax department on ITR processing.

Pankaj Batra•
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