I have approval from my employer to withdraw the provident fund amount, but I am getting the message: “PAN not available - TDS deductions at 34%.” But my provident fund amount is less than Rs50,000. Is PAN mandatory or can I claim the amount without PAN?
—Varadharajan P
There are a few instances where TDS is not applicable on the withdrawal from Employees’ Provident Fund (EPF), such as: transfer from one account to another account, in case of employer closing down his business or any other reason beyond the control of employee or member of EPF; termination of services due to ill-health of employee or member of EPF; if amount is less than Rs50,000 (earlier it was Rs30,000, which was increased to Rs50,000 from 1 June 2016). If the amount is more than Rs50,000, and period of service is less than 5 years but Form 15G/15H is given along with PAN, then too TDS will not be deducted. Also, if your service period is more than 5 years, then irrespective of PAN update, TDS is not applicable. In your case, as the provident fund amount is less than Rs50,000, TDS is not applicable.
