PF Withdrawal Taxability
This query is : Resolved
24 December 2021
Hi,
Please assist on below query:
I have withdrawn the balance from my PF account before completion of 5 years of service with CG India private Ltd.
TDS has already been deducted on withdrawal
Its not clear to me if the amount of withdrawal (both employer and emloyee contribution including interest is taxable or exempt)
I have been in more than 5 years of continuous service including my previous employer
The current employer from whom I have withdrawn PF I was in less than 5 years of continuous service and the balance withdrawn pertains totally to current employer contribution
How to decide on Taxability / any provision which can make the contribution exempt.
Please guide accordingly as I have to finalise and file income tax return for current year
Any provision which can help to save some tax.
Thanks in Advance,
Regards,
Tripti
Please assist on below query:
I have withdrawn the balance from my PF account before completion of 5 years of service with CG India private Ltd.
TDS has already been deducted on withdrawal
Its not clear to me if the amount of withdrawal (both employer and emloyee contribution including interest is taxable or exempt)
I have been in more than 5 years of continuous service including my previous employer
The current employer from whom I have withdrawn PF I was in less than 5 years of continuous service and the balance withdrawn pertains totally to current employer contribution
How to decide on Taxability / any provision which can make the contribution exempt.
Please guide accordingly as I have to finalise and file income tax return for current year
Any provision which can help to save some tax.
Thanks in Advance,
Regards,
Tripti
24 December 2021
Both employer and employee contribution including interest is taxable in case of pf of previous employer is not continued in the current employment
24 December 2021
do we have any reference in law stating this?
I checked the law reference and continuous service was mentioned as inclusive of service from previous employer
I checked the law reference and continuous service was mentioned as inclusive of service from previous employer
24 December 2021
Yes, agree with you but did you continued the PF account.
24 December 2021
No the Pf from previous employer was already withdrawn.
The PF balance withdrawn in les than five years pertains to current employer.
Tenure is 14.10.2016 to 04.01.2021.
The PF balance withdrawn in les than five years pertains to current employer.
Tenure is 14.10.2016 to 04.01.2021.
24 December 2021
also please let me know if we have any specific provision in law detailing this scenario
It would be easy for reference.
Thanks in advance for the valuable guidance.
It would be easy for reference.
Thanks in advance for the valuable guidance.
25 December 2021
See the link.
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.timesnownews.com/amp/business-economy/personal-finance/planning-investing/article/withdrawal-from-epf-becomes-taxable-before-5-years-of-service-10-things-you-need-to-know/787740&ved=2ahUKEwjR3-va_v70AhUPYsAKHRYfCRoQFnoECAQQBQ&usg=AOvVaw32Hb4GIPt_5s--SpkmJ7KZ
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.timesnownews.com/amp/business-economy/personal-finance/planning-investing/article/withdrawal-from-epf-becomes-taxable-before-5-years-of-service-10-things-you-need-to-know/787740&ved=2ahUKEwjR3-va_v70AhUPYsAKHRYfCRoQFnoECAQQBQ&usg=AOvVaw32Hb4GIPt_5s--SpkmJ7KZ
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