Pf trust

prashant1314 (Querist) 05 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 make it nontaxable withdrawal?

Thanks in advance.

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Raj Kumar Makkad (Expert) 05 September 2011
PF withdrawal is taxable if a person has worked in the company for less than 5 years. Tax cannot be saved even by investing in any govt schemes / bonds. It just gets added to income from salaries, and then the taxability will depend upon the Gross Income of the assessee.

It is better not to withdraw PF accumulation and let it be clubbed with the account being opened by new employer.