New Clause to be introduced in the Provident Fund dispersal Act!
Posted on: 04/Jun/2015 7:42:08 PM - No. of views : (2090)
The Regional Commissioner for Employees� Provident Fund has announced that a new clause is being introduced in the dispersal of amount due to the relevant employee.
The press release from Chennai Regional Future Provident Fund Commissioner, Mr. S. D. Prasad:
A new clause 192A has been added to the existing Indian Financial Law 2015 regarding the dispersal of the Provident Fund to the relevant employee.
This will be effective from 1st June this year.
As per this clause, when dispersing the Provident Fund of Rs. 30000/- or more for an employee with a service of less than 5 years, Income Tax will be deducted as per the following ratio.
If the employee had given his PAN (Permanent Income Tax Account Number), 10% will be deducted as Income Tax from the amount due for dispersal.
If the employee had submitted Forms 15G & 15H, no deductions will be made.
On the other hand, if the employee has not given his PAN & Forms 15G & 15H, The maximum percentage of tax deductible (34.608) will be deducted.
Employees� provident Fund subscribers are requested to furnish the details when submitting the form 19 regarding the correct details of length of service, and PAN.
Forms 15G & 15H should be filled and attached with Form 19 which is concerned with PF account closure.
For further information, the subscribers may approach the nearest EPF Offices.
