Query regarding pf

1) Income Tax department says withdrawal is exempt if the employee has rendered continuous service with the employer for five years or more, they don’t advise to keep your money with PF department for 5 years. In this case you can’t meet this criterion as you are going abroad.

2) As per my interpretation, if membership has been terminated due to reasons beyond the control of the employee, the amount will be tax-exempt.  Since you are going to work outside India where PF scheme is not applicable, it is not taxable.

Dear Santosh,

Thanks for your reply. In the PF withdrawal form where I have to mention that I am going abroad for job and they dont have the facility of EPF. So, pleases do not deduct any tax on my PF amount as the things are beyong from my control.

Looking forward for your reply,

Regards

Piyush

Don’t worry at all, they never deduct TDS from claim settlements and employees are required to assess their tax liability & pay taxes (if applicable) themselves.

You can mention “Going Abroad” at serial no.6 of the claim form (Reason for leaving service).

I have assumed here that your Provident Fund maintained by your employer is a recognized provident Fund.

Please check is your employer if it is a statutory provident fund; in this case amount received would be tax free u/s 10(11) and no question of TDS at all.

I guess so that my employer is statutory provident fund, as I am working as scientist in R & D organization under Ministry of Mines, Govt. of India. 

From where we can check that my employer comes under this category or not.

Thanks

Hi

You can confirm with the person who administer your salaries.