No TDS for PF withdrawals up to ₹50k from June 1
The government on Monday raised the threshold limit of PF withdrawal for Tax Deducted at Source (TDS) from existing ₹30,000 to ₹50,000, with effect from June 1. Currently, TDS is deducted at the rate of 10% provided PAN is submitted. The government had introduced the proposal to deduct TDS on PF withdrawals to discourage premature withdrawal and promote long-term savings.