I worked with company A between June 2006 and Nov 2008 (2.5 yrs) and subscribed to the EPF
I switched to company B in Dec 2008 and did not opt for PF, the company was flexible to allow PF opt-out and the PF money (employer contribution paid to me monthly and taxed)
Now, recently I decided to withdraw my accumulated PF (company A) and filed a claim with regional PF, I got the entire money back (2.5 lac), surprisingly no income tax was deducted.
I have heard that one needs to be in full employment for 5 yrs to get the money without tax.
- Do I have to pay income tax on the claimed amount that I received (2.5 lac) ?
- How / when do I pay that and @ what rate ?
- What would be the approximate amount of tax, that I'd need to pay ?
As per the clause, I have been in full employment since 2006 June till now, just that I have not been adding to the PF since Nov 2008.
Please advise, Thanks a lot