Amount - pf trust - taxable at withdrawal ?
prashant1314
(Querist) 03 September 2011
This query is : Resolved
Dear Seniors,
I heard that ( Pvt Ltd / Ltd ) Companies those who are having PF Trust the amount is taxable at the time of withdrawal before 05 years of Service ,
What are the provisions are applicable to not make it taxable withdrawal?
Thanks in advance.
A K CHANDOK
(Expert) 12 November 2011
Dear Sir,
The exemption to the EPF Trust of an estt. is granted only when it fulfils the conditions for grant of exemption. In no circumstance, exemption is granted in case the benefits proposed are less than that of EPF.
Since PF accumulations are not subject to income tax, as such, in my opinion, PF recd. from a Trust is also not amenable under the income tax.
Adv. A K CHANDOK
RPFC (Retd.)
www.akchandok.com
09988021715
