What is Section 192A of Income Tax Act? (2024)

What is Section 192A of Income Tax Act?

Section 192A of Income Tax Act is concerned with the TDS on premature withdrawal from EPF. It directs the Employees' Provident Fund Scheme, 1952 to deduct TDS when employees do not meet the provisions mentioned under Rule 8, Part A of the Fourth Schedule.

What is the Section 192A amendment?

Section 192A of Income Tax Act

This is a new section included in the Indian Income Tax Act as per the Finance Act 2015. This section is all about deducting tax at source on accumulated PF withdrawal. TDS will be applicable only then when your total provident fund withdrawal will be more than Rs. 30,000.

What is the difference between 192A and 192B?

Section 192A – Remuneration given to the Government employees apart from the employees of the Union Government. Section 192B – Remuneration given to the non-government employees. Section 192C – Remuneration is given to the employees of the Union government.

What is Form 15G section 192A?

Is Form 15G mandatory for PF withdrawal? Yes, Form 15G is mandatory if you don't want TDS to be deducted from the PF withdrawal amount. Section 192A of the Finance Act 2015 states that PF withdrawal will attract TDS if the withdrawal amount is more than Rs.50,000 and your employment tenure is of less than 5 years.

What is Section 194 A?

Section 194A deals with the provisions relating to TDS on interest other than on securities. Tax is to be deducted under section 194A, if interest (other than interest on securities) is paid to a resident. Thus, the provisions of section 194A are not applicable in case of payment of interest to a non-resident.

What is Section 192A of PF withdrawal?

Under 192A TDS Section, 10% of tax is deducted at source for a normal assessee. Whereas, for an employee unable to furnish or provide PAN, the employer would need to deduct TDs on PF withdrawal at a marginal rate of 34.608%. There are some exceptions to this rule as well that an employee would need to consider.

What is income under 192?

When is TDS Deducted under Section 192?
Individuals (Age Below 60 years)Individuals (Age more than 80 years)
IncomeTax RateTax Rate
0-2.5 lacsNilNil
2.5-5 lacs5%20%
5-10 Lacs20%30%
1 more row

How to fill Form 15G to avoid TDS?

How to Fill Form 15G Online?
  1. Name & PAN (compulsory)
  2. Tax status – Individual, HUF or Trust.
  3. Previous Year (for which you are submitting the Form)
  4. Residential status in the Previous Year.
  5. Residential address and contact details (Mobile, e-mail)

Is Form 15G mandatory for PF withdrawal?

No, Form 15G is not mandatory for PF withdrawal of less than Rs. 50,000. When is the TDS applicable on EPF withdrawal? TDS is applicable on EPF withdrawal if you make the withdrawal before completing 5 years of continuous service.

What is Form 15G for PF withdrawal?

What is Form 15G? Form 15G is a simple declaration form. If your income is below the tax* threshold, you can state that in this form. Not only for PF withdrawal, but Form 15G will also allow you to get tax exemption on interest earned on other investments like fixed deposits (FD) and recurring deposits (RD).

Which section 194 is applicable in income-tax?

Exemptions of TDS on payment of dividend

In the event of a shareholder (who is an individual), no tax deduction will be claimed under Section 194 when: The dividend is paid by account payee check, and the total amount (whether paid individually or collectively during the financial year) is not to exceed Rs. 2500.

What is Section 194 1b of Income Tax Act?

Section 194IB of the Income-tax Act deals with the tax deducted at source on payment of rent. Section 194IC was introduced to bring the 'Joint development agreement' of real estate under the preview of TDS. An agreement between the owner of the asset and the developer is known as a joint development agreement.

What is Section 194 IB example?

Examples
ParticularsAt the end of FY 2017-18At the end of tenancy
Period of Tenancy8 Months3 Months
Total Value of Rent PayableRs 6,40,000Rs 2,40,000
Rent paid in last monthRs 80,000Rs 80,000
TDS amount @ 5%Rs 32,000Rs 12,000
2 more rows

What is Section 193 of the Income Tax Act?

Section 193 of the Income Tax Act

The 193 TDS section is defined as the tax deduction protocol where the tax will be deducted instantly during a payment transaction. The TDS Section 193 has been implemented over the interest on securities.

Is premature withdrawal from PPF taxable?

As per PPF rules provisions, any kind of money received from PPF account is completely tax exempt. It can be withdrawn money amount, PPF maturity amount or PPF account closure amount.

What is my income type?

Three of the main types of income are earned, passive and portfolio. Earned income includes wages, salary, tips and commissions. Passive or unearned income could come from rental properties, royalties and limited partnerships. Portfolio or investment income includes interest, dividends and capital gains on investments.

What income is below taxable income?

Tax Year 2022 Filing Thresholds by Filing Status
Filing StatusTaxpayer age at the end of 2022A taxpayer must file a return if their gross income was at least:
singleunder 65$12,950
single65 or older$14,700
head of householdunder 65$19,400
head of household65 or older$21,150
6 more rows

What is the exemption for income?

Exemption Rules and Limits under the Income Tax Act

According to the Finance Act of 2014, taxable income eligible for complete tax exemption has been increased in its limits, from the earlier Rs. 200000 to Rs. 250000.

Is it possible to avoid TDS?

Submit Form 15G/H to avoid TDS

2.5 lakhs7, the TDS deducted from your bank deposit can be avoided altogether. To avoid this TDS and eliminate the hassle of filing the income tax return to claim TDS refund, you can simply submit Form 15G or Form 15H (for senior citizens) to the financial institution.

How do I avoid TDS on cash withdrawal?

TDS on cash withdrawal u/s 194N will not apply to withdrawals made by the following persons:
  1. Central or state government.
  2. Private or public sector bank.
  3. Any cooperative bank.
  4. Post office.
  5. Business correspondent of any bank.
  6. White label ATM operator of any bank.

Who Cannot submit Form 15G?

A non-resident cannot submit Form 15G or Form 15H. Your age must be below 60 years. The total tax liability calculated on your total taxable income for the applicable Financial Year is zero.

What is the penalty for not filing Form 15G?

If Form 15G/15H is not submitted timely then penalty of Rs. 100/- per day is imposed u/s. 271A (2) which shall not exceed the deductible tax.

How can I withdraw my full PF amount?

How to EPF Withdrawal without UAN?
  1. Download the Appropriate Form: If you do not have a UAN, you will need to fill out a PF withdrawal form. ...
  2. Fill Out the Form: Complete the chosen form with all the required details. ...
  3. Submit to Regional PF Office: Once the form is filled, submit it at your Regional Provident Fund Office.

How can I withdraw my PF money after leaving my job?

Submission of Form 19: Initiate the PF withdrawal process by submitting Form 19 to your current employer. This form can be obtained from the EPFO website or the nearest EPFO office. Sign the form and provide it to your current employer, along with a cancelled check or a bank passbook.

What is the TDS deduction on PF withdrawal?

TDS is deducted @ 10% on EPF balance if withdrawn before 5 years of service, and the amount is above Rs. 50,000. Remember to mention your PAN at the time of withdrawal. If PAN is not provided, TDS shall be deducted at the highest slab rate of 30%.

References

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