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Exemption

14 June 2018

emploree received amount from P.F ACCOUNT....THAT income is taxable for employee or exempt>???recognized provident fund he...

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Deepak Gupta (CA Student) (15922 Points)
Replied 14 June 2018

Payment from recognized provident fund shall be exempt in the hands of employees in following circumstances:

a) If employee has rendered continue service with his employer (including previous employer, when PF account is transferred to current employer) for a period of 5 years or more.

b) If employee has been terminated because of certain reasons which are beyond his control (ill health, discontinuation of business of employer, etc.).

(Guest)

Nothing is taxable subject to following conditions: Employee left the job after five years of service OR Where Period of service less than 5 years, the termination is due to ill health, discontinuance of business of employer. OR here on re-employment, the balance in R.P.F is transferred to R.P.F with new employer. [For the purpose of computing 5 years period, Period of services rendered with previous employer shall also be included.] If none of the above conditions are satisfied then: The amount not taxed earlier shall be taxed in the same manner as URPF, given below. Any tax concession (e.g. 80C) availed by assesses for contribution to RPF shall now be withdrawn.

Ruchita Vaghani (46 Points)
Replied 14 June 2018

UNDER WHICH SECTION EXEMPT???SEC.10??

Deepak Gupta (CA Student) (15922 Points)
Replied 14 June 2018

Originally posted by : Ruchita Vaghani
	UNDER WHICH SECTION EXEMPT???SEC.10??

u/s 10(12), "the accumulated balance due and becoming payable to an employee participating in a recognised provident fund, to the extent provided in rule 8 of Part A of the Fourth Schedule."