Provident fund

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Murlee (Querist)
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09 August 2008 When an employees resigns from organisation and also withdraw the balance of provident fund accumulated in his PF account, then amount of such PF is taxable ? and if taxable under which head it is chargeable, i mean Salary or other sources ?

"Employee leaves the organisation and withdraw PF within 5 years from the date of joining."

IT IS URGENT

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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09 August 2008 Not taxable if he has completed 5 years. If not, taxable under other sources

Murlee

Murlee (Querist)
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13 August 2008 dear fren

i appreciate your reply, but shouldnt it be chargeable as a part of salary, because employer had given Form /no.16 for this after deducting tax therefrom.

Hiral Raja

Hiral Raja (Expert)
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13 November 2008 - In case PF is withdrawn before completion of five years, then the same should be included in the salary income and TDS should be deducted from from the salary income after adding the amount of PF withdrawal in salary income.

- ALso if required for this purpose, TDS amount can be taken from the PF trust by the Employer.

In case you need any further details/ clarifications, pls. let us know the same.

Murlee

Murlee (Querist)
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14 November 2008 yes i need more clarification because TDS is deducted from amount of PF by employer then how can i get back the same from PF department ? (There is no employers trust, it is govern under PF department)

Murlee

Murlee (Querist)
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14 November 2008 a