New PF withdrawal rule: PAN card holders must do this when filing income tax returns

 

The Union Budget presented by Finance Minister Nirmala Sitharaman suggests lowering the TDS (tax deducted at source) rate for EPF withdrawals made from accounts that have not been seeded with a PAN. If the user’s PAN card is not seeded with the EPF account, the user will be subject to a 20% tax rate instead of the present 30% rate on withdrawals made from the account before the completion of five years, as outlined in Budget 2023.

Read More: Budget 2023: TDS on EPF Withdrawals For Non-PAN Cases Slashed To 20%

“At present the TDS rate on withdrawal of taxable component from Employees’ Provident Fund Scheme in non-PAN cases is 30 per cent. It is proposed to reduce it to 20 per cent, as in other non-PAN cases,” FM Sitharaman had said during Budget presentation.

Premature withdrawals from an EPF account are now subject to taxation.  The funds would not be subject to TDS if the withdrawal was under Rs 50,000. If you haven’t linked your PAN to your EPF account, you’ll have to pay tax at the maximum rate of 30 percent on withdrawals above Rs 50,000.

If an individual withdraws funds from their EPF account during the first five years after starting the account, the withdrawal amount will be considered part of their taxable income.

Read More: Provident Fund New Rule: PF Withdrawal Will Be Taxable If Money Withdrawn Before 5 Years Of Account Opening

If you haven’t already done so, you should wait until April 1 to withdraw money from your EPF account, since after that date the tax rate would be 20% instead of 30% if your PAN is connected to your EPF account.

Sitharaman suggested in the budget that non-government paid workers’ leave encashment upon retirement be free from taxation at Rs 25 lakh, up from Rs 3 lakh.

Source :
Msn

RELATED ITEMS:, , , , 

Comments

Post a Comment

Popular posts from this blog

Senior Citizen Train Ticket Discount: Government has issued a new statement regarding giving discount to senior citizens on train tickets, know the details here

Image
  Senior Citizen Train Ticket Discount: Once again a demand has been made in the Lok Sabha to give discount to senior citizens on train tickets. Senior Citizen Train Ticket Discount:  Railways has withdrawn the discount given to senior citizens on train tickets since the Corona period. However, from time to time there has been a demand to restore this concession given to senior citizens in trains. Even in the winter session of the Lok Sabha, some members raised the demand for increasing fare concessions and facilities for senior citizens traveling in trains. However, even before this, Railway Minister Ashwini Vaishnav has told in the Lok Sabha that during the train journey, every passenger is given an average subsidy of 53 percent on the train ticket. Apart from this, he also told who gets discount on tickets while traveling by train. Demand for discount in train tickets raised again During Zero Hour in the House, Janata Dal (United) MP Kaushalendra Kumar said that before the ...
Read more

Cash Transaction Rules: Income tax rules on cash transaction between Husband-Wife and Son-Father, know rules

Image
  Cash Transaction Rules: Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between you and your wife or between father and son? If you also have these questions in your mind, then let us know their answers… If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family. Income tax sends notice? According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the I...
Read more

Have a Current/Savings Bank Account? Know the Cash Deposit Limits under Income Tax Act to avoid Penalties and Notices

Image
  Adhering to cash deposit and withdrawal limits is crucial to remain compliant with the Income Tax Act in India. This article aims to elucidate the various facets of cash-related regulations, encompassing savings and current accounts, fixed deposits, credit card bill payments, real estate transactions, and more.  Cash Deposit Limits in Savings and Current Accounts The Indian Income Tax Act imposes specific regulations on significant cash deposits in savings accounts. Individuals accumulating INR 10 lakh or more during a fiscal year must notify tax authorities.  For current accounts, this threshold is set higher at INR 50 lakh. Although not immediately taxed, financial institutions report transactions exceeding these limits.  Cash Withdrawal and TDS under Section 194N  Section 194N outlines TDS rules for cash withdrawals. A 2% TDS is levied on withdrawals exceeding INR 1 crore within a fiscal year. Non-filers face a 2% TDS on withdrawals over INR 20 lakh and a 5...
Read more