EPFO issues clarification on TDS on interest on PF contributions
Employee Provident Fund Organisation (EPFO) has issued a Circular Dated April 6 2022 clarifying on calculation and Deduction of Tax (TDS) on Taxable Interest relating to contribution to the provident fund pursuant to the CBDT Notification No. 95 of 2021.
The Circular is applicable on all EPF Subscribers with effect from Apr 1, 2022, for FY 2021-22. It clarifies that the effective date for TDS shall be Apr 1, 2022, or final settlement/ transfer, whichever is later in case of final claim settlement, and in all other cases, it shall be on the date of credit of interest;
The Circular also states that the CBDT Notification requiring tax deduction at source would be applicable in case of PF settlement, transfer claims, transfer from the exempted establishment to EPFO or vice-versa, transfer between trusts, past accumulation transfer, and also applicable in case of death of living member.
The Circular has explained the methodology of computing TDS along with various illustrations.
Click on the below-mentioned link to Download the Circular.