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Pf withdrawal

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This query is : Resolved

MK (Querist)

21 August 2014 Hi,

My PF withdrawal issue is as follows:
- I joined a MNC in India in July 2009, at that time withdrew the PF from my previous employer
- The MNC in India has its own PF trust
- In June 2014, just 1 month before completion of 5 years, I got transferred within the same MNC to its office in US
- So, technically, my last working day with MNC in India is 1 month short of completion of 5 years
- But I did not change company myself but was transferred within the same MNC to US
- Im planning to apply for PF withdrawal since there is no way for me to transfer the PF (as I came out of India)
- The PF withdrawal itself will happen after completion of 5 years
- Now, is my PF withdrawal subject to tax? If so, how much?
- Should I be penalized with tax when I do not have any other option?
Thanks in advance.
MK

ALOK GOEL

ALOK GOEL (Expert)

23 August 2014 1. PF withdrawal money is your money and not taxable whether you take out now or last year or after 4 year or just near 5 yrs or in prev. company or MNC now.

2. There is no need to withdraw or transfer the PF even if you are in US. Rather it earns good interest unless you have some investment plans.

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