Vinay verma (CA FINAL STUDENT) 20 January 2020
One of my friend resigned from a job from Private sector after completion of 5 years. Now he has switched to Govt. job. There is no option of transfer account. He wants to withdraw PF amount. What will be the taxability. How much amount exempt and how much included in taxable income? Also consider 10% TDS.
CAclubindia Online Learning offers a wide variety of online classes and video lectures for various professional courses such as CA, CS, CMA, CISA as well as various certification courses on GST, Transfer Pricing, International Taxation, Excel, Tally, FM, Ind AS and more. know more
Ganapathi Kamath 21 January 2020
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.
CA Arun Tiwari (Partner) 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.