TDS on Premature EPF withdrawal — Section 192A (now 392)
Rate
| Type of payment | Rate (with PAN) | Notes |
|---|---|---|
| any | 10% | — |
No valid PAN: 20% or the normal rate, whichever is higher (Section 397(2), old 206AA).
Threshold
TDS applies when: ₹50,000 (single bill). Once a threshold is crossed, TDS applies on the full amount, not just the excess.
Worked example
Paying ₹70,000 (plus GST) to premature epf withdrawal on 10 June 2026:
Exemptions & relief
- No TDS if service >= 5 years
- Form 15G/15H where income below taxable limit
If you get it wrong
Late deduction: 1% per month or part thereof, from date deductible to date deducted.
Late deposit: 1.5% per month or part thereof, from date deducted to date deposited.
Late return: Rs 200/day (234E equivalent), capped at TDS amount in the statement.
Non-deduction: 30% of expenditure disallowed for non-deduction/non-deposit (40(a)(ia) equivalent); wrong payment code can trigger the same — verify scope under 2025 Act.
FAQs
What is the new section number for 192A from FY 2026-27?
Under the Income Tax Act 2025, 192A now falls under Section 392. The payment/return code is 1004.
What is the TDS rate under section 192A?
10%. If the payee has no valid PAN, 20% applies (or the normal rate, whichever is higher).
What is the threshold for 192A?
₹50,000 (single bill).
Which TDS return is 192A reported in?
Form 138 (was 24Q), filed quarterly.
Written and reviewed by a CA firm. Verified 2026-06-08 against the Income Tax Act 2025 / Finance Act 2025. General information, not advice for your specific case.