It is the desire of every person to lead a comfortable life after retirement. For this, the facility of Employee Provident Fund has been given by the government to all the employed persons in government and private sector. In this PF account, 12 percent of the basic salary of every employed person is deposited every month. Apart from this, the company which is giving you the job deposits 12 percent in PF. After the age of 60, a salaried person can withdraw that money. Apart from this, even in case of emergency, you can withdraw money from this account before 60 years.
The government has fixed some rules regarding tax in PF account. There are different tax provisions for withdrawing money from PF account. But, is it mandatory to deposit tax deduction at source (TDS) money to withdraw PF money? Can we withdraw money without paying tax? So let’s know the answers of all the questions-
Changes in rules happening from April 1
Let us tell you that after April 1, 2022, if more than 2.5 lakh amount is deposited in PF in any PF, then its interest will be taxed. Let us inform that in the current financial year, 8.5 percent interest rate is being available on the amount deposited in the PF account. Taxpayers will get an exemption of up to Rs 1.5 lakh under section 80C of Income Tax on the amount deposited in the PF account. Along with this, there is no tax on the interest earned annually and there is no tax on the maturity amount.
Here are the tax rules-
Let us tell you that if you withdraw money within five years of the opening of the PF account, then you have to pay tax on it. If you withdraw money within five years, you have to pay TDS. On the other hand, if you were not a permanent reply for 1 year in a company and had a permanent reply for four years, then you will have to pay TDS in such condition. If you withdraw up to 50 thousand rupees in less than 5 years, then there will be no tax on it. On the other hand, on the amount above 50 thousand, you will have to pay 10 percent tax on updating your PAN card. On the other hand, in case of non-updation of PAN card, tax will have to be paid up to 30 percent. On the other hand, you will not have to pay TDS on the submission of Form 15G/15H. On the other hand, if the health of an account holder deteriorates after taking money, then in such a situation no tax will be charged from him.
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