New Delhi: Union Ministry of Labour and Employment had final yr issued notification amending EPF Scheme 1952 to permit withdrawal of non-refundable advance by EPF members/subscribers in the wake of COVID -19 pandemic in the nation.
The notification permited PF withdrawal of upto the quantity of fundamental wages and dearness allowance for three months or upto 75% of the quantity standing to member’s credit score in the EPF account, whichever is much less, in the occasion of outbreak of epidemic or pandemic. Since the specific withdrawal was allowed because of the onslaught of covid-19 pandemic, the authorities had made such withdrawals tax-free in the arms of workers.
For workers, who want to make PF withdrawals aside from the permitted COVID-19 stress associated withdrawal, the following taxation implication must be understood.
What are the various kinds of Advances and repair eligibilities in opposition to every?
The service eligiblilty in opposition to various kinds of advances for which member can apply are as underneath:
1. Housing Loan / Purchase of Site / House / Flat or for development / addition
2. Lockout or closure of manufacturing unit
3. Illness of member / household
4. Marriage of self/son/daughter /brother/sister
5. Post matriculation schooling of youngsters
6. Natural CalamityÂ
7. Cut in electrical energy in institutionÂ
8. Purchasing gear by bodily handicappedÂ
9. One yr earlier than retirement
10. Investment in Varistha Pension Bima Yojana
However, PF fund withdrawn for goal aside from above causes earlier than workers full 5 years of steady service (in a number of corporations) will appeal to tax. If workers withdraw greater than Rs 50,000 from the PF fund then TDS @10 p.c underneath Section 192A may also be levied. If the individual doesn’t have a PAN, in circumstances of such withdrawals, TDS can be deducted @30 p.c. TDS is not going to be levied if the withdrawal is lower than Rs 30,000.
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