TDS on cost of amassed stability below recognised provident fund and contribution from authorised superannuation fund
Ministry of Finance has issued around about particulars of TDS on authorised Provident and Superannuation Funds as per Earnings-Tax Act
TDS ON PAYMENT OF ACCUMULATED BALANCE UNDER RECOGNISED PROVIDENT FUND AND CONTRIBUTION FROM APPROVED SUPERANNUATION FUND:
The trustees of a Acknowledged Provident Fund, or any particular person approved by the laws of the Fund to make cost of amassed balances because of staff, shall in circumstances the place sub-rule(1) of Rule 9 of Half A of the Fourth Schedule to the Act applies, on the time when the amassed stability because of a worker is paid, make therefrom the deduction laid out in Rule 10 of Half A of the Fourth Schedule to the Act.
The amassed stability is handled as revenue chargeable below the pinnacle “Salaries”.
The place any contribution made by an employer, together with curiosity on such contributions, if any, in an authorized Superannuation Fund is paid to the worker, tax on the quantity so paid shall be deducted by the trustees of the Fund to the extent supplied in Rule 6 of Half B of the Fourth Schedule to the Act. TDS needs to be on the common fee of tax at which, the worker was liable to be taxed throughout the previous three years or throughout the interval if that interval is lower than three years when he was a member of the fund.
The deductor shall stay liable to deduct tax on any sum paid on account of returned contributions (together with curiosity, if any) even when a fund or a part of a fund ceases to be an authorised Superannuation fund.
As per part 192A of the Act, w. e. f. 01.06.2015 the trustees of the EPF Scheme 1952 framed below part 5 of the EPF & Misc. Provisions Act, 1952 or any particular person approved below the scheme to make cost of amassed stability because of staff, shall, in a case the place the amassed stability because of a worker taking part in an acknowledged provident fund is includible in his complete revenue owing to the provisions of Rule eight of Half A of Fourth Schedule not being relevant at the time of cost of amassed stability because of the worker, deduct income-tax thereon @ 10% if the quantity of such cost or combination of such cost exceeds Rs 50,000/-. In case the worker doesn’t present his/her PAN No., then the deduction must be made at a most marginal fee.
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