hi,
I have a done a job in an private company from Jan 16 to june 16 and on which company has deducted PF contribution from salary.
and today I like to withdraw the above amount.
pls.tell me the taxability in this year PY 19-20??
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Query regarding taxability of provident fund contribution
Replies (5)
if you withdraw PF amount without rendering 5 year continuous service then it is taxable under head salary. and epfo also deduct tds @ 10% if payment is more than 50000/-.
so in my case it I'll be taxable in this year of whole amount
taxble in the year of amount received
1. If you have not rendered continuous service for 5 years and you have withdrwan then the same will be liable to tax in the year of withdrawal.
2. For the purpose of computing the service period of 5 years, previous employers are also taken into consideration. If the amount of withdrawal exceeds Rs. 50,000 then TDS will be deducted u/s 192A @ 10%.
3. Employers portion will be taxable under the head salary and employee portion if not claimed deduction u/s 80C will not be taxable. If deduction claimed then it will also be taxable under the head salary and interest earned on both contributions will be taxable under the head IOS.
Please correct me if the above solution has an alternative view.
I think TDS deducted is @ 30% maximum slab rate - on Employer contribution together with interest accumulated on both employer and Employee contribution.
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