Epf exemption

Tax queries 394 views 2 replies

Jagmohan Purohit & Associates

CA in Practice

34 Points Joined June 2009

Dear all,

I have a doubt relating to EPF Exemption. At the time of termination of job PF is treated as unrecognised provident fund and whole amount will be taxable unless it is not continued for five year. Fact is, person is working in a company for last 2 & half years but now he has been transfered to another company in a same group. The new company is not deducting & contributing PF since PF act is not applicable on it. The person is confused if he withdraws his older PF account, his whole withdrawal amount will be taxable since five years is not completed and in new company PF provisions are not applicable.

what's your opinion in this case.

Replies (2)

CMA RAVI

ASSISTANT MANGER - FINANCE

478 Points Joined June 2010

Originally posted by : jagmohan
	Dear all, I have a doubt relating to EPF Exemption. At the time of termination of job PF is treated as unrecognised provident fund and whole amount will be taxable unless it is not continued for five year. Fact is, person is working in a company for last 2 & half years but now he has been transfered to another company in a same group. The new company is not deducting & contributing PF since PF act is not applicable on it. The person is confused if he withdraws his older PF account, his whole withdrawal amount will be taxable since five years is not completed and in new company PF provisions are not applicable. what's your opinion in this case.

As regards PF is concerned we get rebate on tax. If the employee wants to withdraw his pf he can do so by submitting Form NO. 19 and Form No. 10 C. If he wants to transfer FORM No 13 is required to be submitted.