Income tax on withdrawal of PF
This query is : Resolved
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Srinivasa Joshi
(Querist)
20 November 2025
Sir
Income tax on withdrawal of PF after 20 years of services, on which portion income tax has to pay.
please clarify the doubt sir.
Thanking you
Srinivasa Joshi
Income tax on withdrawal of PF after 20 years of services, on which portion income tax has to pay.
please clarify the doubt sir.
Thanking you
Srinivasa Joshi
21 November 2025
If you withdraw your Provident Fund (PF/EPF) after completing 20 years of continuous service, the withdrawal is fully exempt from income tax. No portion—neither your contribution, employer’s contribution, nor the interest—is taxable because the exemption applies once you cross 5 years of continuous service.
Srinivasa Joshi
(Querist)
22 November 2025
Thank you very much sir
22 November 2025
You are welcome.
Srinivasa Joshi
(Querist)
22 November 2025
Sir
one of my friend is asking his director has withdrawn the PF after 35 years of services, employees, employers and interest amounting of rs. 1.50 cr. please suggest and guide sir any income tax attracts to the assesses. respected sir you are already suggested no tax but exempted under which section for more clarity.
please sir
one of my friend is asking his director has withdrawn the PF after 35 years of services, employees, employers and interest amounting of rs. 1.50 cr. please suggest and guide sir any income tax attracts to the assesses. respected sir you are already suggested no tax but exempted under which section for more clarity.
please sir
22 November 2025
“As per Section 10(12) of the Income Tax Act, 1961 read with Rule 8 of Part A, Fourth Schedule, accumulated balances withdrawn from a Recognised Provident Fund after 5 years of continuous service are fully exempt from tax. Withdrawals before 5 years attract tax unless due to reasons beyond the employee’s control or if transferred to another employer’s RPF.”
22 November 2025
Read: 1. https://cleartax.in/s/pf-balance-withdrawal-incometax
2. https://www.axismaxlife.com/blog/personal-finance/pf-withdrawal-tax-implications
3. https://taxconcept.net/epfo/new-tax-rules-for-epf-withdrawals/
2. https://www.axismaxlife.com/blog/personal-finance/pf-withdrawal-tax-implications
3. https://taxconcept.net/epfo/new-tax-rules-for-epf-withdrawals/
Srinivasa Joshi
(Querist)
22 November 2025
Thank you very much respected sir
22 November 2025
You are welcome..
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