I worked in an association for a considerable length of time yet was moved to another unit after the organization split and I turned out here for quite some time and a half year. While the Employee Provident Fund (EPF) account shows no break for this whole period, the UAN site shows the assistance account of two associations independently.
I’m confronting an issue now while documenting a case online since the residency is displayed as under five years thus there is tax derivation at source (TDS). How might I determine this?
—RadhaAccording to the arrangements of the Income-charge Act, 1961, collected money owed and becoming payable to a representative partaking in a perceived Provident fund will be barred from the calculation of his all out pay
(I) If he has delivered consistent assistance with his manager for a time of five years or more, or
(ii)If the help has been fired by reason of representative’s weakness, or by constriction or discontinuance of the’s business or other reason past the control of the worker, or
(iii) If, on the discontinuance of work, the representative gets work with some other boss, to the degree the collected money owed and becoming payable is moved to his singular record in any perceived fortunate asset kept up with by new business; or
(iv) Assuming that the whole balance remaining to the credit of the worker is moved to his NPS account
As seen above, in case on the end of work, the aggregated funds owed and becoming payable is moved to PF account with new boss and the time of complete help is five years or more, the withdrawal will not be available. In like manner in such case, there will not be any TDS.
It is to be noticed that the internet based UAN gateway reflects administration period under the particular bosses independently. If the PF collections from the main boss is moved to the PF account with the new business, then, at that point, the PF division naturally thinks about the aggregate assistance period and permits the exception accessible and consequently no TDS is applied.
In light of the restricted realities accessible, it appears you have not moved the PF collectings from the principal boss and in this manner the PF division is thinking about the help period as under 5 years and likewise taking into account equivalent to available and deducting tax at source/TDS.
You may in this way set up for move of the PF collections from the principal boss to the PF account with the new manager (by following the predefined cycle under the PF Scheme contingent on whether the past substance was with RPFC or had an inhouse Trust), which would empower the EPFO to permit you the above expressed exclusion or, more than likely you want to guarantee the duty discount while filing the ITR.
In case of asserting of expense refund in the return, the assessment specialists might look for clarification for the equivalent thinking about that TDS had been deducted by the EPFO on such salaries.
Parizad Sirwalla is partner and head, global mobility services, tax, KPMG in India.
