Ppf

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This query is : Resolved

Amit (Querist)

22 February 2012 I have been put in a strange situation. I was working with a company from Feb 2006 till Nov 2010 (4yrs 9 mths). That company had a private trust managing PF. I shifted to a new company in Nov 2010 itself and working with it presently. Current company has PF accounts with govt. I had requested for my PF to be transferred to new account in Jan 2011 itself (Its more than an year now). But the govt office hasn't yet submitted the form 13 to my previous company's trust. The trust has suddenly closed my account and given me my money back. They say that they don't wait for more than 60 days for transfer request, but they waited one year for me.
Now for no fault of mine I have got my money back which I intended to transfer. Do I still need to pay tax?

MOHNISH SHARMA

MOHNISH SHARMA (Expert)

22 February 2012 As you recd the PF amount and added in your income. So you have to pay tax

Amit

Amit (Querist)

22 February 2012 There must be some way out. Even after following the process duly, just because of lethargic attitude of govt pf office, i end up paying huge tax?

MOHNISH SHARMA

MOHNISH SHARMA (Expert)

22 February 2012 Hey Amit
Law is Clear. PF amount withdrawn before 5 years is taxable in the hands of receiver. So you have to show this in your IT return & pay tax on it.

Guest

Guest (Expert)

22 February 2012 Yes, you will have to pay tax on the amount.

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