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This discussion clarifies the taxability of Provident Fund (PF) withdrawals. Generally, both employer and employee contributions, along with interest, are taxable if withdrawn before completing five years of service. If you claimed 80C deductions for your employee PF contributions and withdraw the funds prematurely, these amounts will be subject to tax in the year of withdrawal.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)

17 August 2021 CONTRIBUTION TO RECOGNISED P F STARTED FROM JUNE 15 TILL OCT 17
P F AMOUNT WAS WITHDRAWN IN FULL ON 23.07.20
WHETHER EMPLOYER & EMPLOYEE CONTRIBUTION AND INTEREST RECEIVED ARE TAXABLE ?

Gokul Sharma

Gokul Sharma (Expert)

17 August 2021 yes it is taxable .....

MAKARAND DAMLE

MAKARAND DAMLE (Querist)

18 August 2021 withdrawn after 5 years. Still it is taxable

VISHNU PRASAD GHUWALEWALA

VISHNU PRASAD GHUWALEWALA (Expert)

18 August 2021 In your case you seem to have not served continuously for 5 years.
so employers contribution, interest and in case you have taken 80c benefit, it is totally taxable.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)

18 August 2021 Employee contribution to PF was shown by employer in 80C deductions for all the years other investments qualifying for 80C were coming to Rs.1.5L C
In that case can it be said that for 80C benefit was not taken for employees contribution to P F