PF amount withdrawn
This query is : Resolved
18 March 2011
If I withdrawn my EPF amount after one year of the service. it is taxable or not. if yes please explain
18 March 2011
Yes Fully Taxable.
Rule 8 of Part A of the Fourth Schedule of I T Act provides the circumstances under which the accumulated balance payable to an employee is exempt from tax . If employee fulfills any of following conditions, payment from recognised provident fund is tax free :
(i) if he has rendered continuous service with his employer for a period of five years or more, or
(ii) if, though he has not rendered such continuous service, the service has been terminated by reason of the employees ill-health, or by the contraction or discontinuance of the employers business or other cause beyond the control of the employee, or
(iii) if, on the cessation of his employment, the employee obtains employment with any other employer, to the extent the accumulated balance due and becoming payable to him is transferred to his individual account in any recognised provident fund maintained by such other employer.
Rule 8 of Part A of the Fourth Schedule of I T Act provides the circumstances under which the accumulated balance payable to an employee is exempt from tax . If employee fulfills any of following conditions, payment from recognised provident fund is tax free :
(i) if he has rendered continuous service with his employer for a period of five years or more, or
(ii) if, though he has not rendered such continuous service, the service has been terminated by reason of the employees ill-health, or by the contraction or discontinuance of the employers business or other cause beyond the control of the employee, or
(iii) if, on the cessation of his employment, the employee obtains employment with any other employer, to the extent the accumulated balance due and becoming payable to him is transferred to his individual account in any recognised provident fund maintained by such other employer.
sai swaroop munaga
(Expert)
18 March 2011
PF Is always Exempt. EEE applies to PF
18 March 2011
https://www.itrust.in/content/tax-planning/What-is-the-Tax-treatment-of-Provident-Fund
For details see below link.
For details see below link.
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