If the recipient of Employee provident Fund (EPF) withdrawal does not provide his PAN, TDS on the withdrawal will be _______, instead of the maximum marginal rate as per new budget of 2023.

Question

Question

This question was previously asked in

SSC Selection Post 2024 (Higher Secondary Level) Official Paper (Held On: 21 Jun, 2024 Shift 2)

Answer 1

The correct answer is 0.2

Key Points

If the recipient of Employee Provident Fund (EPF) withdrawal does not provide his PAN, TDS on the withdrawal will be 0.2 instead of the maximum marginal rate as per the new budget of 2023.
This measure aims to ensure that individuals without PAN are not subjected to excessively high TDS rates.
Providing PAN helps in maintaining accurate records and ensures that the correct TDS rate is applied.
It is advisable for EPF recipients to provide their PAN to avoid higher TDS deductions.

Additional Information

The Employee Provident Fund (EPF) is a retirement benefits scheme that is available to all salaried employees.
Both the employee and employer contribute a part of the employee's salary towards the fund.
The EPF is managed by the Employees' Provident Fund Organization (EPFO).
Withdrawals from EPF are subject to TDS if the amount exceeds ₹50,000 and the employee has not completed five years of continuous service.
To avoid TDS, it is crucial to provide the correct PAN details to the EPFO.