Tax implication on PF Pension withdrawl

If yu are rendering services for more than 5 years in the current employment, then withdrawal from pension account is exempt u/s 10(12) of the income tax act, 1961.

If u rendered service for less than 5 years in current employment from where u have given resignation and withdraw PF amount after resignation, it would definately become taxable. Further, if you withdraw amount before 5 years of your current employment, your investment in provident fund will be considered as invt in unrecognised provident fund from the begining itself and thus, not only interest but also principal portion of your investment which total comes to INR  1.67 lakhs in your case would become taxable and should get added to you taxable income. 

Hope this solves your query.

Thanks and regards,

Manoj B. Gavali

agree with MANOJ