Provident fund contribution taxability???

I think NO it is EEE scheme

what is EEE scheme??

Roshan ji,

If that PF is URPF then there will be tax liability on Employer's contribution and interest thereon under the head salaries and the interest on employees contribution will be taxable under the head income from other sources.

if provident fund is recognised and statutory then it will be exempt and in case of unrecognised it will be taxable

UNRECOGNISED PF - TAXABLE

RECOGNISED PF - EXEMPT

STATUTOTY PF - EXEMPT

INTEREST OF PF EMPLOYEE CONTRIBUTION - TAXABLE

Originally posted by : Roshan Alwani
	Hello Guys,     I would like to know is PF contributions taxable on withdrawal?? Thanks in Advance, Roshan

taxable if withdrawn without completion five completed years of contribution

exempted thereafter

Agreed with US Sharma. Five year continuous working period may be with different employers.

@ Roshan: EEE means Exempt-Exempt-Exempt at various stages i.e.Deposit-Accrual-Withdrawal.

EEE means Exempt on deposit , exempt interest exempt on withdrawal. 

yes i agree with U S Sharma

taxable if withdrawn without completion five completed years of contribution

exempted thereafter even in case of recognised provident fund

The position is as follows:

1.Employer's contribution upto 12 % of salary(which is normal )along with interest at Statutory rate (rate as declared by Central Provident Fund Trust(CPFC)) is exempt.

2.Employee's subscripttion upto12 % of salary(which is normal) along with interest at Statutory rate(rate as   declared by CPFC) is exempt.

3.If the employer follows these guidelines,if it is privately managed Trustby employer,the withdrawls are fully exempt.

There is no such restriction as 5 years now for getting exemption.

kkm

Guys thanks for your reply...but i think what Siddharth ,Ketan & Hardik said is for  taxability at time of Contribution and not at time of withdrawal....

Correct me if i am wrong

RA

Yes, the answer which i gave was not on the line of quest.

Mr. U. S. Sharma is correct. and i agree with them.

Thank you for correcting me.