Tax on withdrawal of EPF amount
This query is : Resolved
13 September 2022
I need clarity on Tax applicable on EPF withdrawal.
I was working with company A from 04-Dec-2014 to 12-Aug-2016 and during this tenor EPF was deposited with Company's EPF Trust.
Due to personal issues I was not working for 4 months i.e.. from 13-Aug-2016 to 04-Jan-2017. Later I joined Company B on 5-Jan-2017 and with Company B the EPF was deposited under UAN a/c. So from Jan-2017 onwards I am in continuous service.
Finally Company-A pushed me to withdrawn EPF amount and after completing the formalities received credits of Rs.Rs.203000/- on 12th May-2021 i.e. 4.9yrs after service exit with Company-A. At the time of withdrawal Form15 was submitted hence there no deduction done by Company-A however same is present in my Form 26AS under head - PART A1 - Details of Tax Deducted at Source for 15G / 15H.
Please confirm if this EPF withdrawn amount is Tax free or do I need to pay taxes.
Thanks in advance.
I was working with company A from 04-Dec-2014 to 12-Aug-2016 and during this tenor EPF was deposited with Company's EPF Trust.
Due to personal issues I was not working for 4 months i.e.. from 13-Aug-2016 to 04-Jan-2017. Later I joined Company B on 5-Jan-2017 and with Company B the EPF was deposited under UAN a/c. So from Jan-2017 onwards I am in continuous service.
Finally Company-A pushed me to withdrawn EPF amount and after completing the formalities received credits of Rs.Rs.203000/- on 12th May-2021 i.e. 4.9yrs after service exit with Company-A. At the time of withdrawal Form15 was submitted hence there no deduction done by Company-A however same is present in my Form 26AS under head - PART A1 - Details of Tax Deducted at Source for 15G / 15H.
Please confirm if this EPF withdrawn amount is Tax free or do I need to pay taxes.
Thanks in advance.
CA R SEETHARAMAN
(Expert)
13 September 2022
It's taxable as you have not completed 5 years of service in that company.
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