Question on Income Tax Computation for PF Withdrawl

PF accounts, where the contribution is not completed for 5 years can not enjoy the exemption, hence the whole the sum withdrawn will be subject to tax in year of withdrawl, 

the amount would be added to your taxable income and would be taxed as per slab, TDS if any deducted by EPF would be available to set off your tax liability or refund., as the case may be

AGREE WITH U S SHARMA

Originally posted by : RADHEKRISHNA0001
	AGREE WITH U S SHARMA

 In some other threads I am seeing that  the tax liability is on only employers contribution and the interest amount.  And there is no liability on employee contribution. Can you please clarify ? Thanks again for your time and suggestions.

whole the sum so withdrawn including interest is taxable in case of closure of EPF account before completion of five years.

surely tax is appilicable for premature withdrawl but one can have option to transfer his/her old PF account to new PF account to get the exemption.