Taxability of pf withdrawal
P.C. Joshi
(Querist) 25 May 2016
This query is : Resolved
Hellow friends,
I shall be grateful if any one of you can throw some light on my following issue relating to PF withdrawal:
I worked in a company long till 2007 for over 10 years where I was a member of PF/EFP.Then i joined many other companies and left and withdrawn by PF in all the cases. In last case where I worked for 3.5 years. I withdrew my PF as the other company which joined had no PF. I am of the opinion that I have already completed 10 years in my previous company so I do not fall within the ambit of minimum 5 years condition for withdrawal and PF and EPF withdrawn by me should not come under the ambit of tax liability.
Please let me know whether there is any tax liability on PF withdrawan by me.
Thanks
PCJoshi
Kumar Doab
(Expert) 25 May 2016
PF balance is: Employee's Contribution+ Employer's Contribution+Interest
Withdrawal of PF balanceis not taxed, if you had a continuous service of 5 years or more. 5-year period will include periods of your previous employment if you had transferred the PF balances from your previous employer(s) to the latest account..................
Except in case: your service was terminated due to ill-health..............
your employer's business was discontinued..............and/or any other cause beyond your control.
