PF withdrawal after 5 years

rama krishnan

12244 Points Posted on 21 January 2020

Withdrawal after 5 years won't attract taxability. moreover to be absolute, deposit that withdrawn amount to new pf account

Ganapathi Kamath

229 Points Posted on 21 January 2020

Full amount can be withdrawn. file FORM 31

Vinay verma

CA FINAL STUDENT

96 Points Posted on 21 January 2020

No tax liability on withdrawal after 5 years? what about employer's contribution and Interest part?

Ganapathi Kamath

229 Points Posted on 21 January 2020

It can be withdrawn too using Form 31

Vinay verma

CA FINAL STUDENT

96 Points Posted on 21 January 2020

Ok... thanks .. but computation given by previous company charged tax on Employer's cont. and interest part.

Maybe the PF holder had not completed 5 years of service at that time. PF withdrawal before completion of 5 years of service attracts TDS at 10% on providing PAN and 20% in case of failure to provide PAN.

Vinay verma

CA FINAL STUDENT

96 Points Posted on 21 January 2020

Ok thank u

CA Arun Tiwari

Partner

6665 Points Posted on 23 January 2020

if you are withdrawing the amount from pf after completing 5 years of service then no TDS will be deducted. however if you are withdrawing pf amount even 1 day before 5 years then 10% tds will be deducted if amount is more than Rs. 50,000.

Vinay verma

CA FINAL STUDENT

96 Points Posted on 23 January 2020

What about part of amount included in our ITR? If more than 5 year or less than 5 year? like Employer's Cont., Employees Cont. and Interest part.

Vinay verma

CA FINAL STUDENT

96 Points Posted on 02 February 2020

In case of less than 5 year.... is this possible thar I will withdraw amount in part in various years... like 50% in current year and 50% in next year