Is pf withdrawal taxable fy16-17?

Dear Sir/Madam,

I was working in a Private company from Sep-04 thru Jun-13 (9 years 7 months) The company has a PF Trust. In Aug-16 I have withdrawn full PF amount of around 10 lacs. Of this amount around 4 lacs is reflecting in my Form 26AS. I am unemployed so could not transfer PF to any other account.

Company said that out of this 10, 4 lacs is Employer contribution + Interest and this part is taxable.

Is this correct as per prevailing rules for FY16-17? I was under the impression that PF amount withdrawn after 5 years is tax free.

Does this mean I need to mention this 4 lacs as Salary in my ITR return form and pay taxes as per applicable slab?

Thanks and regards,

Rajesh.

Replies (4)
Which type of PF it is???? Either RPF or URPF or PPF.

Thank you for the query. It's a private company that employees over 2000 people.

So I supect it's RPF. The PF body is a Trust.

As I mentioned in my post. Employer has sent the details to IT and an entry for 4 lacs is seen in my Form 26AS. No TDS is cut by employer however.

If it is an RPF then amt withdrawn is tax free as after 5 years of service amt withdrawn from PF is taxfree.

If company is saying that employer cont & interest thereof is taxable then it may be URPF.

Consult the type of PF.

As above amt exempt in case of SPF,RPF,PPF but employer con& int on it is taxable in URPF.

Thanks for the reply. Company has clarified that it's PF trust comes under 'Exempted Trust Fund'. Would Income tax be applicable in this case of PF withdrawal?

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