No tax deduction for PF withdrawals of up to rs. 50,000 from June 1

SMS VARANASI

i. The government has notified that it has raised the threshold limit of PF withdrawal for deduction of tax (TDS) from existing Rs 30,000 to Rs 50,000. So there will be no deduction for PF withdrawals of up to rs. 50,000.
ii. Because the government had introduced the proposal to deduct TDS on PF withdrawals in order to discourage pre-mature withdrawal and to promote long term savings.
iii. Also, no tax is deducted if employee withdraws PF after a period of five years. The provision will come into effect from June 1, 2016.

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