PAN is required during EPF withdrawal/settlement if you do not want some excess tax to be deducted from your EPF account. If you fail to submit PAN, the tax deducted at source (TDS) can be as high as 34.6%.
Is EPF withdrawal taxable?
EPF or Employee’s Provident Fund is taxable if withdrawn before you complete 5 years of service. These 5 years do not have to be with the same employer and they do not have to be continuous. However, you have to complete the same before your EPF balance can be tax-free.
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How much tax is payable on EPF?
If you withdraw your EPF before completing 5 years of service, the withdrawal is taxable as follows:
- The interest paid on the EPF is taxable at your slab rate
- The Employer and Employee contributions are taxable at your slab rate. This is because the deduction given to EPF contributions in previous years is reversed. These contributions now become taxable.
What if excess tax is deducted?
If you fail to furnish PAN and tax is deducted at 34.6% or any other rate higher than your slab rate, you can claim a refund from the Income Tax Department. However, refunds are paid after filing income tax returns at the end of the financial year and there are often delays in paying these refunds.
PAN for EPF Partial Withdrawals
PAN is not required for partial withdrawal or advances under Para 68 of the Scheme. These are withdrawals/advances for medical treatment, purchase of house and education/marriage of children. You can find out more about them here.
PAN for EPF Full Withdrawals
For full settlement cases, TDS would be deducted if the total amount is more than ₹50,000/- and service period is less than 5 years. The TDS amount changes according to whether you have given PAN. Full withdrawal due to unemployment of two months or more would come under this category. The following conditions apply:
- If your withdrawal is between 50,000 and Rs 2.5 lakh, no TDS would be cut if PAN is provided or Form 15G/H is submitted (if applicable). Form 15 H/G apply if your income is below the taxable limit of 2,50,000.
- For amounts, more than 2.5 lakh TDS would be deducted at 10% if PAN is provided
- For amounts greater than 2.5 lakh, if PAN is not provided, TDS would be deducted at the maximum marginal rate of 34.608%.
- Note: There is no TDS if your service is more than 5 years or amount is less than ₹50,000 and hence you do not need to submit PAN in this case.
PAN is an important KYC document for online settlement also due to the reasons stated above. You can update PAN details through the unified member portal or through the UMANG App while applying for settlement.
83 Comments
I have served in a college as sweeper for 3 years. i am not educated and i don’t have PAN. I have PF account and i want to withdraw my PF amount. How to withdraw without pan. The amount in my PF account is approximately 8000/-
Hi,
If you withdraw your PF amount before the time period of 5 years, you will be liable for paying TDS at 30%, if PAN is not verified. If you get your PAN details verified on the portal, the tax deducted at source will be 10%.
You need to register in the incometaxindia website and you can see your name how it is available in the incometax database. so this name exactly should match with your EPF account name, if not matching then you need to go for name correct for pan card then add in the EPF site it will accept. for this pan correct you need to fill the pan correction form and also one gazited officer signature on other form and his id proof.
My name on income tax department is saved as .
It is correct in PAN card and same is what is present in UAN portal. I am not able to add PAN as KYC document due to error “Name in UAN is not matching with name in income tax department”
Please advise
I have same problem. Is your problems solved?
Hi,
In such a case, you are advised to first verify the details on your PAN card and on the UAN portal. If that is not an issue, you may then talk to your employer about changing your name in the UAN.
if your AADHAR NAME and NAME IN UAN portal is same then link your pan to aadhar using this link https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/LinkAadhaarHome.html then you can add PAN as KYC…
UAN fetches name from Aadhaar (UIDAI database). It is recommended that you get your name updated in Aadhaar or PAN, wherever there is a mistake, and then try again.
Hii all
Is PAN required to claim PF and Pension both together is more than 50000
Hi,
In case of premature withdrawal of PF, you will have to pay TDS of 30% if PAN card details are not furnished. However, if otherwise, TDS of only 10% would be applied.
can I Withdrawals my PF in advance for illness if my services less den 5 years and PAN card not submitted?
Hi
You can only withdraw a part of your PF balance for any medical emergency. Additionally, if you have not submitted your PAN details, your tax deducted at source will be applicable at 30%, whereas it will be 10% if PAN details have been submitted on the portal.
Hi,
Yes, you can withdraw a part of your PF balance in less than 5 years of your service. However, you will have to pay a TDS of 30% if your PAN details are not verified. If you verify your PAN details, the TDS to be paid will come down to 10%.