EPFO ISSUES GUIDELINES: TDS ON INTEREST ON PF CONTRIBUTIONS
Employee Provident Fund Organisation (EPFO) issued a circular dated 06th Apr 2022 which clarifies about the calculation and deduction of tax on taxable interest which is relating to contribution in provident fund pursuant to CBDT Notification No. 95 of 2021-Income Tax. Ads by
This circular is applicable to all EPF subscribers with effect from 01.04.2022 for FY 2021-22.
As per the circular, the effective date for TDS in case of final claim settlement shall be :
And in all other case,
The CBDT notification requiring tax deduction at source would be applicable in case of :
Also applicable in death cases in case of the live member;
gives you the explanantion methodology of computing TDS, states that taxable part of contribution will be subject to separate accounting of interest and maintenance as closing balance of taxable part will earn interest and subject to TDS.
Accordingly, the interest on contribution and claim for refund shall be divided into two components – Taxable and Non-taxable for the purposes of deduction of tax.
TDS rate shall be :
Further, it will be applicable to international workers as well.
Calculation of taxable interest relating to contribution in a provident fund or recognised provided fund, exceeding specified limit has been given under Rule 9D in the income tax rules,1962.
The threshold limit shall mean:
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