isham rajgariah 14 April 2018

Tds on epf

I need some advice. I had joined my first company and stayed there for 4 years 8 months. I changed my job and immediately joined a 2nd company. After 4 months i.e total 5 years of service, I withdrew my PF from first company. They deducted TDS. Is it valid? Can i reclaim it?

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2 Replies

R.Ramachandran (Advocate) 14 April 2018

You should have got the accumulated balance in your PF account to your account with the new employer. As you have not done so, the amount of PF Withdrawal done by you is taxable and TDS effected by the earlier employer is perfectly in order.

It is not clear when you received the PF Amount. If you had received the PF amount only now (say within a month or two) then try to get in touch with your new employer and deposit the entire amount in your new PF Account. If you are able to do it, then you will be able to get refund of the TDS. Otherwise, you may have to pay tax on the entire PF Amount less TDS already deducted.

Kumar Doab (FIN) 14 April 2018

1st of all understand that; Your contribution of EPF is not for 5Y. Your vintage in records of EPFO ( for 1st company PF a/c) is not of 5Y…..

Did your 2nd company ask and did you submit PF forms to 2nd company? Do you have copies with acknowledgment? Did you mention the previous PF number in it?

Did 2nd company submit your PF forms to EPFO?

Did IT show PF deduction in salary slips?

The previous PF number was continued or not?

Get in touch with jurisdictional EPFO with facts .