TDS to be two times more if EPF account is not linked to PAN | How to check

New Delhi: The Employees' Provident Fund Organisation (EPFO) has issued a set of guidelines on the deduction of tax on interest earned on EPF accounts. 

As per the new norms issued on April 6, if the EPF account is not linked to PAN, TDS will be deducted at 20 per cent, ie., double the rate of normal TDS of 10 per cent, of the interest earned on excess contribution of above Rs 2.5 lakh per annum.

The normal rate of 10 per cent will be applicable for those who have linked their EPS account with a valid PAN.

The final tax will be calculated after adding the interest from EPF to the account holder's income.

The Central Budget last year had announced that those making excess contributions of above Rs 2.5 lakh per annum will be taxed. 

Those in the private sector and having the employer's contribution to their PF account will be taxed for contributions above Rs 2.5 lakh. If there is no contribution from the employer (public sector) the interest on additional remittances of above Rs 5 lakh will be taxable.

Tax, at the rate of 30 per cent, will be deducted at source from those holding active accounts in India and abroad.

Those having employer's contribution are exempted from TDS for remittances up to Rs 2.5 lakh, which will be considered as a single account. Excess amount will be transferred to another account under the main one, and taxed.

How to link EPF account with Pan card:

• Visit EPFO UAN Member e-Seva Portal and login using the UAN number and password.
• From the main menu click ‘Manage > KYC’
• You will be redirected to ‘Add KYC’ page, where you will see a list of document under ‘Document Type’ to update.
• Select ‘PAN’ > Enter ‘PAN Number’ > Enter ‘Name as printed on your PAN card’ > Click ‘Save’