Unions question TDS on PF withdrawals, want order on hold

Opposing the government’s decision to deduct tax at source on pre-mature PF withdrawals, trade unions today said they will ask the Labour Ministry to put the EPFO order in this regard on hold.

In a notification issued yesterday, Employees’ Provident Fund Organisation (EPFO) said it will deduct TDS from June 1 on PF withdrawals where accumulations are over Rs 30,000 and the employee has worked for less than five years.

“We will oppose the government’s move of deducting TDS (Tax Deducted at Source) at PF withdrawals. We have decided to write to the Labour Minister for keeping this notification in abeyance,” All India Trade Union Congress Secretary D L Sachdev told PTI.