Section 192A of Income Tax Act

  • Author :
  • TATA AIG Team
  • Last Updated On :
  • 22/04/2024

Indian Income Tax Act includes various provisions that regulate the tax liability and period of its payability. Some taxes are deducted at the source before passing on the taxable income to the other person.

One such section is 192A, which holds significance for the employee during the withdrawal of their provident funds. To make these provisions easy for assessees, we provided a comprehensive guide detailing provisions, exemptions, rates, and compliances.

What is Section 192A of Income Tax Act?

Section 192A of the Indian Income Tax Act is about the Tax Deducted at Source(TDS) on the early withdrawal from the Employees Provident Fund(EPF). The Income Tax Act introduced this provision under the purview of the Finance Act, of 2015. The tax is paid as a certain percentage of the withdrawal amount.

Payment Period

Here’s the period of TDS on PF withdrawal taxable under which section of Income Tax Act 192 applies:

Payment of Quarter  Payment Due Date 
April to June  31st July 
July to September  31st October 
October to December  31st January 
January to March  31st May 

Who can Deduct TDS Under Section 192A

Every Person or employer, who is paying to employee any income which is chargeable under the head “Income from salary” is required to deduct TDS before making the payment.

192A TDS Rate of Deduction on Provident Fund

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. Let us have a look at them.

Exemptions Under Section 192A of Income Tax Act

Here are some exemptions under which tax is not deducted under section 192A of the Income Tax Act: When the total EPF Withdrawal amount is below the 192A TDS limit of ₹50,000.

If EPF withdrawal occurs after 5 years of continued service at an organisation (Pan is not required).

If an employee furnishes form 15H or form 15H along with Pan Details.

Termination of PF account due to any reason.

Completion of an employee work role at the organisation.

Conclusion

192A Section TDS of the Income Tax Act emphasises early withdrawal from the Employees Provident Funds(EPF). It required a deduction of TDS at the rate of 10% and at a higher rate if the PAN details were not provided. However, there are certain deductions available on small withdrawals. Understanding the provisions of section 192A can help in effective tax management.

Tax Benefits with Tata AIG Under Section 80D

While considering the Income Tax Act, Section 80D mainly focuses on the deductions allowed on premiums paid by the assessee on health insurance policy. ₹50,000 per year for senior citizens and ₹25,000 for other individuals, or the amount spent, whichever is lower, can be deducted from gross total income before tax calculation.

With tax benefits on personal health insurance, one can safeguard one’s health while availing tax benefits.

At Tata AIG, we provide online health insurance at a very affordable cost with add-on facilities as per your requirements. Remember to keep the documents for tax benefits when you buy health insurance online.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

Tata AIG Also Offers Insurance for the below products

Health Insurance

Two Wheeler Insurance

Car Insurance

Travel Insurance

scrollToTop