Hi. Thanks for reading & answering my query.
I am working in a consulting & advisory MNC. For PF puposes for PF cut my company cuts 12% share and also their share of 12% from me. Meaning I pay for my Company's 12% share too!! I cannot complain here as the the my employment offer clearly stated that my package included employers contribution of 12% towards PF too.
So my query is the following:-
- I plan to go for higher studies in next Fy so will have to withdraw my PF. I would not be completing 5 years of service with this company and is the first time Iam getting my PF deducted.so what I want to know is that will whole amt. be taxable or only the interest. As EMPLOYER'S share I'am contributing will that be taxable too.
- Secondly is it necessary to contribute towards PF. I mean my Basic Salary is above the limits specified by the PF ACT but my company says it is cumpulsory due to some internal policy. Can't I talk to them without creating any much hassel....actually I feel deducting PF is not good currently for me. I usually invest Rs 1 Lakh in ELSS to gain Tax EXemption. With PF I will need to withdraw and the amt will I think become taxable.....if I withdraw next year....as I need the funds for my MBA.
- Also how much tax is deducted...meaning will I get PF amt. credited in the bank a/c after deducting tax or I will have todeposit it. Also if it is TDS then what is the rate...is it 22.5% or 30% or any other rate.
- Also Suppose Even if I withdraw the PF Amt Next Year and they (designated autorities) cut tax on it but if my whole year income less than the taxable limit will I get the taxed amount back
- Also If I leave my PF account as it is after leaving my job...I mean I do not withdraw the PF amt.....and suppose after my MBA I get a good job abroad and leave my PF a/c for 5 years (total) untouched then if I withdraw the amt will it be taxable.
I know it is rather long query but I will be gratefull if somnebody replies as my 12% share and employers 12% share (which Iam contributing) works towards around 1 Lakh.
I THANK you all in advance for all your help & Efforts!!
Thanks again!!