Pf withdrawal taxation

Tax queries 604 views 3 replies

Ranga

Others

25 Points Posted on 09 July 2014

Hi,

I have one question wrt PF withdrawal taxation. My first employment with a X company was for 10.5 years and they maintained a separate PF trust (Registered). My current employment with Y company will end in another month (so 1.5 years) and they have Government PF account. I transferred PF amount from X to Y (government PF account). I am leaving my current company (, going abroad) and am looking to withdraw PF. Will I be taxed on withdrawal? I understand that, if it was a recognized PF trust, then it wont be taxed. I request your confirmation.

Thanks,

Ranga

Replies (3)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 09 July 2014

yes, recognized pf is based on EEE model whereas other pf trust are based on EET model so your withdrawal will get taxed.

Ranga

Others

25 Points Posted on 10 July 2014

Hi Triubuvan,

Thanks for the reply. I want to bring clarity to my question,

- 10.5 Years of continous employment in X Company: PF handled by Recognised Provident fund handled by Company X

- 1.5 Years of continous employment in Y Company: PF Account in EPF

- On joining company Y, transferred the PF amount from RPF to EPF

- Leaving Company Y now (i.e., after 1.5 years of service) and looking to withdraw the EPF amount

The question is, will the withdrawn amount be taxed?

Thanks,

Ranga

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 10 July 2014

withdrawal is taxed if served for less than 5 continuous years. i read few articles to get clarity on continuous service... after reading them i am on the conclusion that you have been in continuous service for 12 yrs and hence your withdrawal will not be taxable.