Pf withdrawal after 15 years and taxability

Labour & Industrial 483 views 2 replies

M

29 Points Joined June 2015

I have worked for more than 15 years at one organisation. I am leaving my service in July, 2015. I am having following queries -

1. Whether my PF withdrawal including interest is taxable ?

2. My new employer is not coming under EPF scheme. Shall I continue my current EPF A/c for next 3 years as dormant to get interest benefit ?

3. My current employer might close down his business in another one year's time, In such case what are the documents needed for my withdrawal after 3 years (i.e. dormant period) ? and what is the procedure of withdrawal after 3 years ? How to submit required documents to EPF in that case ?

4. In case of withdrawal of PF what are the best investment options to keep taxability low ? Pl. guide.

Replies (2)

CA Suri Kota

Assistant Manager @ EY

955 Points Joined November 2007

Hi,

check this link - /forum/interest-received-on-employee-provident-fund-101104.asp

Its better to take off the PF from current employer as they are going to close the business to avoid complexiites.

Regarding the investment options it depends on one's thrust and cash requirements. Better to go with Mutual funds with moderate risk.

Thanks,

Suri

M

29 Points Joined June 2015

Thanks CA Mr Suri Kota for your timely help. It will definitely help me in taking right decision.

In connection with my above queries one more thing I want to ask.

Due to financial problem my employer is not depositing gratuity amount in authorised gratuity fund for past few years. I want to know whether gratuity is mandatory for employer or it is non-mandatory. If it is mandatory then under which section of Payment of Gratuity Act I can demand same ? Pl. guide.