what is taxability treatment of 4 components of pf when accumulated bal is withdrawn before 5 years. 1. employer contribution 2 interest on employer contribution 3. employee contribution 4. interest on employee contribution
Replies (2)
Quick Summary
This discussion clarifies the taxability of Provident Fund (PF) withdrawals made before completing five years of service. It outlines how employer contributions, interest on employer contributions, employee contributions, and interest on employee contributions are treated for tax purposes. The general rule is that withdrawals are taxed if made before five years, with TDS applicable above certain thresholds.