What is the tax rate on EPFO withdrawal?
-
I'm trying to understand the tax implications of my father's EPFO account. I need to know:
Are taxes deducted currently, or are they applied only when funds are withdrawn? If the deductions happen upon withdrawal, what tax rate will be used, particularly in the context of his potential post-retirement income? Additionally, does the EPFO continue to accrue interest on accounts that have been inactive for more than three years?
-
The service period and withdrawal amount impact the tax rate on EPFO. If PAN is provided, then TDS is 10% on withdrawals that are made before 5 years and exceed ₹50,000; without PAN, it's 30%.
There will be no tax if the withdrawal is less than 50k or the service is 5+ years.