Please Help: TDS ON PROVIDENT FUND
Posted Date : 17-Mar-2018 , 09:38:58 am | Posted By CA. NIRANJAN PURANDARE
W.e.f. 01/06/2015 the Trust / administration of Recognised provident fund is required to deduct TDS @10% on the payment proceeds of PF balance to the employees u/s 192A if that employee has not served continuously for the period of 5 years as provided in the Schedule IV Part A read with Rule 8 of the I.T. Act, 1961 in that regard.
However there is a provision in favor of such employees who have not put in more than 5 years of service provided the termination of employment is on account of:
1. Ill health of the employee.
2. Contraction or Discontinuance of the employer’s business.
3. Other cause beyond the control of the employee.
I want to understand that what are the circumstances which can be termed as “beyond the control of the employee†which would satisfy the A.O.’ s requirement and allowing such proceeds to be exempt income in the hands of the assessee.
Are any case law in favor of employee on this issue with citations?
However there is a provision in favor of such employees who have not put in more than 5 years of service provided the termination of employment is on account of:
1. Ill health of the employee.
2. Contraction or Discontinuance of the employer’s business.
3. Other cause beyond the control of the employee.
I want to understand that what are the circumstances which can be termed as “beyond the control of the employee†which would satisfy the A.O.’ s requirement and allowing such proceeds to be exempt income in the hands of the assessee.
Are any case law in favor of employee on this issue with citations?
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