Hi Friends,
I have recently changed my company after working for 2 yrs. I am confused - whether i should withdraw my PF or I should transfer it to my new company? And if I withdraw what would be tax implications?
Thanks & Regards
Shamit
shamit nagar (financial analyst) (24 Points)
15 December 2011Hi Friends,
I have recently changed my company after working for 2 yrs. I am confused - whether i should withdraw my PF or I should transfer it to my new company? And if I withdraw what would be tax implications?
Thanks & Regards
Shamit
Z
( )
(2960 Points)
Replied 15 December 2011
If the amount is received by the assesse before 5 years then full amount is taxable.
Therefore balance of RPF in your old company should be transfered to the new company and the period of service under previous employer shall be included in calculating the continuous service.
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 16 December 2011
Shamit ji,
If PF amount is withdrawn before 5 years of continious service then the deduction availed in previous years for the deposit of PF u/s 80C shall be deemed as income of the assessee in the relevant P.Y. and no further deduction shall be allowed for contribution in that P.Y.
Please mention whether it was RPF or URPF...
CAclubindia
