Tax on PF Withdrawal

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Vishal

CFO

23 Points Posted on 07 December 2010

Dear Friends,

I worked in an MNC in India from June 2003 to June 2007 and my PF and Superannuation account balance is Rs. 3 lacs in a Recognised PF. Then in July 2007 I left India and moved abroad. Thus number of years service was 4 years but I still did not encash my PF & Superannuation balance waiting for 5 years to finish.

Now in Dec'2010 while I am still working abroad, I am planning to withdraw the amount. From June 2003 it is almost 7.5 years. Please advise whether moving abroad permanently is a valid reason for non taxability of the fund withdrawal.

Regards,

Vishal

Replies (2)

U S Sharma

glidor@gmail.com

21670 Points Posted on 07 December 2010

fully exempted under sec 10(12) the accumulated balance due and becoming payable to an employee participating in a recognised provident fund, to the extent provided in rule 8 of Part A of the Fourth Schedule;
for the reason of absence u have to convince your previous employer, as u have to get claim forms signed by them only.

Vishal

CFO

23 Points Posted on 14 May 2011

Originally posted by : Vishal
	Dear Friends, I worked in an MNC in India from June 2003 to June 2007 and my PF and Superannuation account balance is Rs. 3 lacs in a Recognised PF. Then in July 2007 I left India and moved abroad. Thus number of years service was 4 years but I still did not encash my PF & Superannuation balance waiting for 5 years to finish. Now in Dec'2010 while I am still working abroad, I am planning to withdraw the amount. From June 2003 it is almost 7.5 years. Please advise whether moving abroad permanently is a valid reason for non taxability of the fund withdrawal. Regards, Vishal