Pf withdrawal

This query is : Resolved

Pravin M Kerkar (Querist)
Follow

25 December 2014 Hi,

I would like to know to what extent can i withdraw PF for purchasing a house property so that i have to apply for a lesser amt of bank loan.
i have completed 6 yrs in my current organisation.

Thanks

Rupesh Jain

Rupesh Jain (Expert)
Follow

26 December 2014 yes you can withdraw due to under income tax if you withdraw the amount before completion of 5 year then amount will include in your income in which year you withdraw the amount.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
Follow

27 December 2014 As per Section 10(13) of the Income Tax Act, 1961 only in the following cases withdrawal from Provident fund is exempt
i) on the death of a beneficiary ; or
ii)to an employee in lieu of or in commutation of an annuity on his retirement at or after a specified age or on his becoming incapa-citated prior to such retirement ; or
iii) by way of refund of contributions on the death of a beneficiary.

Therefore under section 10(13) there is no provision for 5 years, the withdrawal of fund from provident fund other than the circumstances mentioned above will be taxable in all cases.

However, you can take loan against such provident fund balance, not restricted anywhere.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now