Tax on PF withdrawl

jitanderc (Querist) 14 May 2008 This query is : Resolved
I had worked for Pvt ltd company for 4 yrs 11months and 13 days and I left that company 2 years back. But the amount is not tranferred or withdrawl. Now after 2 years if i apply for withdrawl , will there by ANY TAX on it. aS I HEARD that if PF tenure is less than 5 years , tax will be charged. My tenure is very close to 5 years, just less then 17 days.

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Guest (Expert) 29 May 2008
As per section 16 of the Income Tax Act 1961, the condition is very specific that there must continuous service for more than 5 years.

You donot satify the condition, therefore the withdrawn amount will be taxable, such tax will be usually deducted at source.