Provident Fund : Withdrawal

TDS 211 views 4 replies

prasanth kumar

10 Points Joined January 2022

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)

Vasudevan C P

403 Points Joined January 2018

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.

prasanth kumar

10 Points Joined January 2022

Thank you Vasudevan.

debora M

BUSINESS DEVELOPMENT MANAGER

1697 Points Joined February 2019

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.