Govt. in its budget has proposed TDS @ 10% on EPF withdrawals before the completion of 5 years. EPF is a long term investment. To discourage withdrawal from EPF account (except in cases of termination due to ill health, closure of business, death, etc.), TDS has been proposed @ 10%. However, it has also been proposed to provide a threshold limit of INR 30,000/-.
If anyone does not want TDS to be deducted, he can apply in Form 15G for Non-deduction of TDS. Form 15G is a declaration by the person that his total income will not exceed maximum amount not chargeable to tax during financial year.