I was working in the Organistion from May 2007 to 28th Sept 2011. I am planning to withdrow the PF as i have joined the another Company. Is this scenario is my Withdrawn Pf amount is taxable ? if yes then how much ? please reply….
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Pf withdrawal
Replies (5)
ya u can withdraw PF amount........!!!!!!
yes, PF withdral before expiery of 5 completed years of contribution is taxable in the year of withdrawl.
transfer the PF account to your new employer , it would be a fair.
PF withdrawal is taxable if a person has worked in the company for less than 5 years. Tax cannot be saved even by investing in any govt schemes / bonds. It just gets added to income from salaries, and then the taxability will depend upon the Gross Income of the assessee.
| Head | Statutory PF | Recognized PF | UnRecognised PF |
| Employers contribution to PF | Exempt from tax | Exempt up to 12% of salary (Basic +DA) | Exempt from tax |
| Deduction under sec 80C | Available | Available | Not available |
| Interest credited on PF account | Exempt from tax | Exempt up to 9.5% | Exempt from tax |
| Lump sum payment received at the time of retirement or termination of service | Exempt from tax | Exempt from tax: | Only employees share of contribution is exempt |
| a. If the employee has worked for at least 5 years with the employer | |||
| b. If the service is terminated on account of ill-health or by contraction or discontinuance of the employer’s business or any other reason beyond control of employee | |||
| c. If the employee transfers the balance in his PF to his new PF a/c maintained by his new employer |
| Originally posted by : U S Sharma | ||
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yes, PF withdral before expiery of 5 completed years of contribution is taxable in the year of withdrawl. transfer the PF account to your new employer , it would be a fair. |
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and you may require form 13 to do this..
But i would suggest, if u have joined some Good brand then only u transfer ur pf account,
Otherwise, its better to fill form 10 & 19 and withdraw.
thanks....
If PF is withdrawn before completing 5 years, than what portion of the accumulated balance in recognised PF will be taxable i.e. employers contibution OR employees contribution OR both.
Under which head PF withdrawl will be taxable i.e. Salary or Income from Other Sources?
Please clarify.
Thanks
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