EPF after settling abroad

1) Yes

2) As you have not rendered continuous service for a period of 5 years, TDS @ 10% is deductible. If you are NRI then TDS rate would be 10%+surcharge + cess(4%). Surcharge is Nil if PF amount is upto Rs. 50 lacs and net effective rate would be 10.4%. Income tax would be payable on Individual slab rate basis. You can opt for new tax rate regime.

3) 

(a) You can file Form 15G if the tax on estimated total income of the previous year including pf withdrawal is NIL.

(b) (i) Payment received in respect to employers contribution and interest thereon will be taxable under the head salaries. 

(ii) Payment received in respect to interest on employees contribution will be taxable under the head income from other sources.

(iii) Payment received in respect to employees contribution is NIL.

For detailed discussion, please take phone consultation.

Hi

1. Yes you can withdraw.

2. If you withdraw from EPF before completing 5 years of continuous service, TDS will be deducted. In calculating 5 years of service, your tenure with the previous employer is also included. If you transfer your EPF balance from the old employer to a new employer and your total employment is 5 years or more, no TDS is deducted.

TDS is deducted @ 10% on EPF balance if withdrawn before 5 years of service.Remember to mention your PAN at the time of withdrawal. If PAN is not provided TDS shall be deducted at highest slab rate of 30%. You can submit Form 15G/Form15H if tax on your total income including EPF withdrawal is nil. TDS is not deducted if Form 15G/Form 15H is submitted.

Your EPF payout has 4 components.

a) Your contribution/employee’s contribution b) Interest on your/employee’s contribution c) Employers contribution and interest on employer’s contribution

a) Your contribution/Employee’s contribution – This is the amount contributed by you to your EPF. This portion of your withdrawal is not taxable. However, if you have claimed deduction under section 80C on your contribution in earlier years, you may have to pay additional tax as if 80C was not claimed by you for those years.

b) Interest on your/employee’s contribution – This portion is taxed as income from other sources.

c) Employer’s contribution and interest on employer’s contribution – Employer’s contribution and interest on it is fully taxable. It is taxed under the head salary in your tax return. When TDS is deducted on it, you are likely to see an entry under salary TDS in your Form 26AS for it.

For details discussion please have a phone consultation.

1. Yes, you can.

2. Yes, you will have to pay tax as per the slab rate. If your total Pf withdrawal in a year is more than 2.5 lacs (assuming you are an NRI and don't have any deduction of chapter VI), then it will be taxable. Service period is relevant here. Since your service period is less than 5 years, PF withdrawal is taxable.

3a. - refer point 2 above

3b - No, you don't need to pay retrospective tax.