PF

This query is : Resolved

vignesh srinivasan (Querist)
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08 July 2011 WHAT IS MEANT BY TAX REBATE ON PF
THE EMPLOYER IS DEDUCTING THE SAID AMOUNT AS TAX WHEN PF IS RECEIVED BY THE EMPLOYEE ON RESIGNATION

U S Sharma

U S Sharma (Expert)
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08 July 2011 if the service is not completed 5 years then PF withdrawl is taxable, hence TDS applicable

Praveen Sharma

Praveen Sharma (Expert)
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09 July 2011 TDS is deducted if withdrawal before service of 5 years.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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10 July 2011 AS per the provision of Income Tax Act PF if any paid or deducted will qualify for rebate u/s 80C and the same is deducted from total tax payable.

As regards deducting of TDS on the refund of PF then first you have to check whether the Provided Fund is recognized or not . If it is unrecognized PF then the employer is correct and right in deducting TDS otherwise no tds is to be deducted.