Section 192A: TDS on Payment of accumulated balance of Provident fund due to an employee.

This article explains about important provisions of Section 192A of Income-tax act 1961 "TDS on Withdrawl from PF"

According to section 192A the trustees of the Employees' Provident Fund Scheme, 1952 or any person authorised under the scheme if make payment of accumulated balance due to employees is required to deduct TDS.

Payer: Any Person

Payee: Employee

Nature of Payment:

Accumulated balance from Employee provident due to the employees

TDS Rate: 10%

Note

• No TDS if amount Less than Rs 50,000.
• TDS applicable only if it is taxable in hands of employee
• If employee failed to furnish PAN then TDS has to be deducted at the maximum marginal rate.

Timing of Deduction:

At the time of payment of the accumulated balance due to the employee.

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