Provident Fund withdraw- what is tax liability

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harshit (Querist)
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26 December 2007 our employee withdraw Epf from company, on that how much amount will be taxable as per Income tax.

what is the exemption limit?

In what section it was available in IT recknor?

plz sir

SANDEEP AGGARWAL

SANDEEP AGGARWAL (Expert)
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26 December 2007 There are three type of EPF
1 Pf Deposited with RPFC
2. Own Recognised PF
3. Unrecognised PF
In case of recognised PF employee can withdraw only after completion of 5 years. if he withdraw before that period than employees contribution as well as interest thereon will be taxable in the year of withdrawl. You can check in detail from salary chapter of any IT recknor or from Taxman Direct tax law.
Regards,
Sandeep Aggarwal

harshit

harshit (Querist)
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27 December 2007 thanks sir.

our employee service was not completed 5years, so his EPF amount interest will be taxable

yes, sir - this is correct?