Tax deduction on pf withdrawal after 3 years of service

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This query is : Resolved

Vikas Kumar (Querist)

27 May 2014 Hi, Last Year I left my job after working around 3 and half years and withdrew my PF . My employer is having a trust with EPFO and they deduct 30% of the tax on amount = ( Total Amount - Member Contribution ). But my annual income is in the category of 10% . Kindly suggest whether I can go for refund or is this the rule that if you withdraw your PF before 5 years than flat 30% would be deducted.

Rupesh Jain

Rupesh Jain (Expert)

29 May 2014 under the income tax act if you withdraw the PF amount before 5 years then it include in your income and taxable accordingly.

Vikas Kumar

Vikas Kumar (Querist)

29 May 2014 Hi Rupesh,

Many thanks ! Just one confusion i have that my employer deducted 30% though my income was in 10% slab even after adding the PF amount. So it means i can file a refund from IT Deptt.. Please let me know if i am right.

Thanks,
Vikas

Rupesh Jain

Rupesh Jain (Expert)

31 May 2014 yes, you can file return for claiming refund .

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