New PF Withdrawal Rule Budget 2023: If you are a subscriber of Provident Fund Account available under Employees Provident Fund Organization (EPFO). So this news is very useful for you. The Modi government at the Center has changed the rules for withdrawing money from the Employees Provident Fund Organization (EPFO). Union Finance Minister Nirmala Sitharaman has changed the rules related to tax regarding withdrawal from Provident Fund in Budget 2023. Know what is the new update related to it? And how will people get benefit from it.
Now TDS will be 20%
If you are going to withdraw money from your PF account, now you will have to pay TDS at 20% instead of 30%. If PAN card is linked to your account or not, it will be applicable in both the cases. This new rule related to EPFO will come into force from 1 April 2023 across the country. If you withdraw from EPF before 1 April 2023, you will have to pay TDS as before.
TDS is not applicable after 5 years
If an account holder withdraws money within 5 years, then he has to pay TDS. At the same time, no TDS will be levied on withdrawal of money after 5 years. Finance Minister Nirmala Sitharaman had informed in the budget that the threshold limit of at least Rs 10,000 for TDS has also been removed. While this rule will be applicable in the case of lottery. That is, TDS will not be deducted till the total amount of 10 thousand in a financial year, but after that it will definitely be deducted.
Understand the important things related to it at a glance
- If someone’s PAN card is not updated in the records of EPFO, then he has to pay 30% TDS. But now it has been reduced to 20 percent.
- If a person withdraws money within 5 years of opening the EPFO account, then he will have to pay TDS.
- If you withdraw an amount of more than Rs 50,000 and have a PAN card, then 10% TDS will be applicable.
- If you do not have PAN, now 20 percent will have to be paid.
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