Explanation
Section 192A of IT Act 1961 (carried into IT Act 2025) applies when an employee withdraws EPF before completing 5 years of continuous service and the withdrawal amount exceeds ₹50,000. The EPFO deducts TDS at 10% if the employee's PAN is on record. If PAN is not provided, TDS is deducted at the maximum marginal rate (currently 30% + surcharge + cess). Exemptions: no TDS if service ≥ 5 years, or if transfer between employers, or on account of ill health/employer closure. Form 15G/Form 121 (IT Act 2025) can be submitted by the employee to avoid TDS if total income is below the taxable limit. Verify on the income-tax portal before filing.