PF Withdrawal: Tax-Saving Strategies for Indians

When we think of withdrawing PF, it seems that a large amount of money will be received, but if you withdraw more than 50,000 rupees before 5 years, then you can save tax by filing Form 15G / 15H. Not many people know that TDS is less than your income tax limit, but knowing the right rules, you can save it. PF is completely tax-free when your job is at least 5 years old. If you have changed jobs, then it is necessary to transfer the old PF to a new account, otherwise it will be taxed. Every PF withdrawal is not taxed. TDS is not deducted on the amount up to 50,000 rupees, but if you have less than 5 years of service. If you are withdrawing more than 50,000 rupees before 5 years, then you can save tax by filing Form 15G / 15H. This declaration is less than your income tax limit, otherwise 10% TDS will be deducted. If you do not link PAN card to UAN, then you can save TDS. In such a case, 10% TYC can be directly deducted in 20 years, so it is also a smart way to withdraw TDS up to 5 years.