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PF received on resignation taxable or not

Manjiri Vijay Gokhale (ASST MANAGER) (24 Points)

04 June 2010

I resigned from South indian Bank on 30 Nov 09 after rendering a service of approx 4 years.. I received settlement amount of PF on 31st dec 2009. I would like to know whether this PF is taxable or not. What will be the tax status if I transfer the same amount to PPF a/c.

Manjiri.

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3 Replies

Bhavik Davda (Proprietor) (238 Points)
Replied 07 June 2010

Dear Mr. Gokhle,

Any amount received from the Recognised Provident Fund received on its maturity or on termination of services are exempt from tax ( Capital receipt in nature for easy understanding of my professional freinds)- But if you are taking transfer from one bank to another the same should be transfer and needs to be carry out over there. It is advisable to do the same.

Regards,

Bhavik Davda

www.vaibham.com

Rahi Naik (student) (180 Points)
Replied 19 June 2010

Hello Bhavik ... as per my Knowlodge if u r leave job withing 5 yr of ur joining u r liable for tax other than transfer to other employer.... while there is an exception case if person nt able to joint job due to its health or handicap person rule 5