Microlesson · 5-min read

Section 192A — Premature withdrawal from EPF

# Section 192A — TDS on Premature EPF Withdrawal

## Who deducts?

Payer: Any person (trustees of EPF / EPFO).
Payee: Employee withdrawing accumulated PF balance before completing 5 years of continuous service.

## When?

At the time of payment (not credit).

## Threshold

Payment ≥ ₹50,000.

## Rate

10% of accumulated balance.

## If PAN not furnished

As per Sec 206AA, TDS @ Maximum Marginal Rate (currently 30% + surcharge + HEC for 192A).

Worked example

### Example 1

Example: Mr. K withdraws ₹3,00,000 from his EPF after 3 years of service. TDS u/s 192A @ 10% = ₹30,000. Net received: ₹2,70,000.

### Example 2

Example: Withdrawal of ₹45,000 — no TDS as below the ₹50,000 threshold.

Deducting TDS on EPF withdrawal after 5+ years of continuous service (no TDS / exempt).
Applying TDS on the excess over ₹50,000 — it actually applies on the entire amount once the threshold is crossed.

Reference: 192A

Now that you've read this — what's next?

Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.