TDS Rules: Many important announcements have been made by the Modi government in the budget 2023. Through these announcements, announcements have been made by the government keeping in mind the interests of different classes of people. Along with this, an important announcement has been made by the Modi government regarding PF in this budget. Crores of people are also going to benefit from this announcement.
Budget 2023
The general budget of the country has been presented by Finance Minister Nirmala Sitharaman on 1 February. In this budget, the Finance Minister has made many big announcements. Along with this, an important announcement has also been made in the budget regarding Provident Fund (PF). This announcement is going to benefit those people who are going to withdraw from PF account.
TDS rate
According to the budget speech of Finance Minister Nirmala Sitharaman, earlier 30% TDS was to be paid on withdrawal from EPF. However, now a proposal has been made by the government to reduce it. Now 20 percent TDS has been proposed by the government on EPF withdrawal. In such a situation, now people will have to pay only 20 percent TDS on withdrawing money from EPF.
People are going to benefit a lot by deducting TDS on withdrawal from PF Niksi EPF. The reduction in the TDS rate on EPF withdrawal will help those individuals whose PAN number is not updated with the records in EPFO. At the same time, the requirement of deducting tax at the maximum marginal rate on PF withdrawals for non-PAN holders has been done away with to provide some relief to income earners in lower-income slabs. Such persons will now attract 20% TDS. At the same time, the new rule will be applicable from 1 April 2023.
EPF
As per the current income tax laws, TDS is deducted on EPF withdrawal if the money is withdrawn within 5 years of opening the EPF account. If PAN is available with EPFO, TDS is deducted at the rate of 10% if the withdrawal amount exceeds Rs 50,000. However, if PAN is not available, TDS is deducted at 30%.
Read More: Union Budget 2023: Made-in-India smartphones, TVs to get cheaper
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