Pf withdraw

Hi,

we have seen cases where Tax has not been deducted even for the people who withdrawn below 5 years in any case.

Dear Sandeep,

You are right.  If you transfer the PF from company A to B, your subsequent PF withdrawal from Company B (including the amount transferred from Company A) shall be non-taxable.

Needless to say that transfer of PF from one company to another is a cumbersome and time-consuming process.

Further, in regards to the response given by Suri Sahab's reply, non-deduction of TDS doesn't provide finality to the matter as withdrawal of PF from company A is a taxable transaction.  Just that instead of meeting the tax liability through TDS, you shall have to do via self-assessment tax.

I hope the above sufficiently address your concerns.

Nikihil,

I agree with wat u said...do u think eveyone declares in their return about thePF withdrawal........... :) 

Strictly speaking we need to disclose so......but how many will follow this. It's nothing but one's call. :)

Suri, But I, in principle, cannot advise wilful non-compliance of tax provisions.  I believe our mandate as experts here is to give to the client an idea of how law stands. 

Other advisory can be done offline on professional fee basis!!! lolz

hahahaha.......... :)

This is just to complete answer to second question of Sandeep, you can not withdraw PF while serving company B.

Santosh,

Thank you very much for this.  You actually covered the issue we all forgot to answer.