Pf withdrawal after 5 years (but discontinued service)

Tax queries 1232 views 4 replies

Rahul

Software Engineer

31 Points Joined September 2012

I am writing this query on behalf of my wife on her PF account with some company (private limited) in past.

Date Of Joining = 19-Feb-2007
Actual Date Of Leaving = 16-Nov-2009
Reason For Leaving the job = Terminated by the employer
So Month Of Continuous Service = 2 years & 9 Months approximately.

After that she never had a job & got married after some time & is a house wife now. Now she wrote a mail to the Company HR recently to withdraw her PF amount after completion of 5 fiscal years since when the PF account was opened by the company. They are saying that tax will be deducted on this. I wish to confirm the facts by writing my point in this forum.

Replies (4)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

Yes they can do so because your wife even if she is withdrawing the PF balance after 5 years she has actually served the company for only 2 years whihc is less than 5 years. So tds will be attracted

Rahul

Software Engineer

31 Points Joined September 2012

Dear Giridhar S Karandikar ,

Thank you for your prompt response. I have got one more doubt. You mentioned that tds will be deducted. So my doubt is that will tds be calculated financial year wise or will be flat on total amount as of now. I asked this as my wife's income was low & she hardly paid any tax except in one finacial year that too for Rs 750 approx. I just wish to get an idea of what amount will be taxed.

Venu Chaganti

80 Points Joined May 2009

Hi,

Tax will be deducted on entire amount. It will not be deducted year wise.

You can file IT Return and get back TDS.

Regards

Venu Chaganti

9164113900

Rahul

Software Engineer

31 Points Joined September 2012

Hi Venu,

So as I undestand from your point that her pf withdrawal amount will be counted in her income for this fiscal year & will be taxed accordingly. The pf amount is Rs 38000 & being female & housewife (no other income of her own) , I think she wont have to pay taxes if my understanding is correct. Please advise !