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Pf withdrawal

Hemant (J3) (24 Points)

07 November 2011

I was working in the Organistion from May 2007 to 28th Sept 2011. I am planning to withdrow the PF as i have joined the another Company. Is this scenario is my Withdrawn Pf amount is taxable ? if yes then how much ? please reply….

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5 Replies

Anupam Bajaj (Student) (111 Points)
Replied 07 November 2011

ya u can withdraw PF amount........!!!!!!

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 07 November 2011

yes, PF withdral before expiery of 5 completed years of contribution is taxable in the year of withdrawl.

transfer the PF account to your new employer , it would be a fair.

Rahul Sharma (----------) (8192 Points)
Replied 07 November 2011

PF withdrawal is taxable if a person has worked in the company for less than 5 years. Tax cannot be saved even by investing in any govt schemes / bonds. It just gets added to income from salaries, and then the taxability will depend upon the Gross Income of the assessee.

Head	Statutory PF	Recognized PF	UnRecognised PF

Employers contribution to PF	Exempt from tax	Exempt up to 12% of salary (Basic +DA)	Exempt from tax
Deduction under sec 80C	Available	Available	Not available
Interest credited on PF account	Exempt from tax	Exempt up to 9.5%	Exempt from tax
Lump sum payment received at the time of retirement or termination of service	Exempt from tax	Exempt from tax:	Only employees share of contribution is exempt
		a. If the employee has worked for at least 5 years with the employer
		b. If the service is terminated on account of ill-health or by contraction or discontinuance of the employer’s business or any other reason beyond control of employee
		c. If the employee transfers the balance in his PF to his new PF a/c maintained by his new employer

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CMA Sonu... (Asst. Manager - Finance) (158 Points)
Replied 07 November 2011

Originally posted by : U S Sharma
	yes, PF withdral before expiery of 5 completed years of contribution is taxable in the year of withdrawl. transfer the PF account to your new employer , it would be a fair.

and you may require form 13 to do this..

But i would suggest, if u have joined some Good brand then only u transfer ur pf account,

Otherwise, its better to fill form 10 & 19 and withdraw.

thanks....

1 Like

Niraj (Self Employed) (67 Points)
Replied 08 November 2011

If PF is withdrawn before completing 5 years, than what portion of the accumulated balance in recognised PF will be taxable i.e. employers contibution OR employees contribution OR both.

Under which head PF withdrawl will be taxable i.e. Salary or Income from Other Sources?

Please clarify.

Thanks