Provident Fund : Withdrawal

Hi Team,

I was working for a company in India for  about two  and half hours (2013 to 2015), After that in Mid 2015 year I went abroad since then did not work in India almost six years now. Now My India company asked to withdraw by Provident fund. I would like to know whether is there going to be any tax on this amount. I guess Provident amount is around 1.25 Lakhs to 1.5 Lakh which I would get, I own a flat in India for which I get a rent of 1 Lakh per annum that is the only income I have.

Please advise Tax Guru's.

 

Regards

Kumar

 

Replies (4)
Quick Summary
This discussion addresses the taxability of Provident Fund (PF) withdrawals for individuals who have worked abroad for an extended period. The initial query concerns potential taxes on a PF amount after leaving employment in India for over six years. A response clarifies that if the PF withdrawal is made before completing five continuous years of service, it is subject to tax and a 10% TDS. Further information is provided regarding EPFO rules allowing partial withdrawals before retirement or after a period of unemployment, with questions arising about the tax-free nature of these specific withdrawal types.

Hi Kumar, since the amount of PF is more than 50000 and you were not in employment for the continuous 5 years, PF withdrawal is subject to tax and TDS @ 10% will be deducted by the company.

Thank you Vasudevan.

 

 

EPFO allows withdrawal of 90% of the EPF corpus 1 year before retirement, provided the person is not less than 54 years old. ... As per the new rule, EPFO allows withdrawal of 75% of the EPF corpus after 1 month of unemployment. The remaining 25% can be transferred to a new EPF account after gaining new employment.

Hello Debora,

Thank you for information, if we with draw 75% is it tax free, am looking for the way to avoid tax.

Please advise.

 

Regards

Prasanth

 

 

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