PF WITHDRAWN

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This query is : Resolved

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If you withdraw your Provident Fund (PF) when changing jobs, the employer's contribution and any interest earned are generally taxable if received within five years of leaving employment. The employee's contribution may also be taxable if you've claimed tax deductions under Section 80C. Income is typically taxed under 'Salary' for contributions and 'Income from Other Sources' for interest. You may be eligible to claim relief under Section 89(1).

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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17 August 2021 PF MAINTAINED WITH EMPLOYEES PF ORGANISATION IS WITHDRAWN AT THE TIME OF CHANGE OF EMPLOYMENT
WHETHER AMOUNT RECEIVED TOWARDS EMPLOYER CONTRIBUTION, EMPLOYEE CONTRIBUTION AND INTEREST WOULD BE TAXABLE ? IF YES UNDER WHICH HEAD ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 August 2021 Yes, it's taxable if received within 5 years.
Contributions taxable under salary head, interest taxable under income from other sources.
89(1) relief can be claimed.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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17 August 2021 EMPLOYEE CONTRIBUTION ALSO TAXABLE ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 August 2021 Yes, in case of 80c deduction claimed.

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