Provident Fund Withdrawal

Tax queries 4185 views 3 replies

Dinesh Dhariwal

Professional

37 Points Joined August 2008

Can anyone please tell me how to calculate tax in the following scenario:

I left a company after working for 2 years and decided to withdraw amount from my PF. I received around INR 1.49 lakhs (total 2.15 lakhs less TDS @ 30% i.e INR 0.66 lakhs). I don't have the bifurcation of total amount of INR 2.15 lakhs. How shall I calculate my tax liability since the total amount included mine as well employer's contribution (employer's contribution already taxed). I thought of adding deductions on account of PF I have claimed u/s 80C in previous years and taking it as my income and calculate tax accordingly.

Replies (3)

praveen

Chartered Accountant

6971 Points Joined September 2007

PF withdrawn before 5 years of completion of service is fully taxable in the year in which it is withdrawn.

I think your company has taken that into account before making deduction of tax at source.

Please ask your company for Form 16 .

Then it would be really clear for you.

Dinesh Dhariwal

Professional

37 Points Joined August 2008

Isn't it that in case of PF withdrawal before 5 years of service, only employee's contribution is taxable as the same has been claimed as deduction u/s 80C earlier?