Withdrawal of PF amount

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Member (Querist)
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09 November 2010 Dear sir,

I am planning to switch my job and will be moving into new company next month. My tenure in the current organization is over 5 years. I have few questions :

1.Is the withdrawal of accumulated PF amount taxable for me.
2.Can I withdraw the PF amount and invest again in VPF and claim the 80C benefit again?
3.For taxation point of view, what is better option? transferring the PF balance to new employer PF account or withdrawing and re-investing the current balance.

Please Help.

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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09 November 2010 Mr .Nvneet your contribution toward the provident fund will not be taxable at the time of withdrawn but employer contribution will be taxable in the your hand .
and for interest on provident fund , it will be taxable under the head income from other sources .
2
If you like to invest the same fund to the provident fund than why you want to withdrawn that fund if can transfer it when you will change job your provident fund will remain the same as it was earlier .
3
but if you like to withdrawn it will be taxable at that time only , further you can claim deduction u/s 80c up to Rs 100000/- if you will invest in public provident fund
Note:- Maximum deduction u/s 80c is Rs 100000/-

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