TDS needs to be deducted on Premature Withdrawal from EPF Account i.e. before 5 Years of continuous service. TDS is deducted @ 10% on if the withdrawal amount exceeds Rs. 50,000. In case PAN of the employee is not available then TDS needs to be deducted @ 30%
e-TDS Return Form: Form 24Q needs to be filed by the Payer/ Deductor for that Quarter. And TDS needs to be deposited on or before the 7th of the next month via challan no. 281.
TDS shall be deducted at the time of:
- Crediting the sum to payee account or
- Actual payment of cash or
- Payment via cheque, draft or via any other source, Whichever is earlier.
However, You can get non-refundable withdrawal to the extent of the basic wages and dearness
allowances for three months or up to 75% of the amount standing to your credit in the EPF
account, whichever is less under this new provision to fight COVID-19.