Tax on PF withdrawal

U S Sharma

glidor@gmail.com

21068 Points Posted on 10 June 2011

4 Years + 240 days of contribution will make you exempted to deduct any tax on withdrawl.

CA ADITYA SHARMA

CA IN PRACTICE

16719 Points Posted on 10 June 2011

no it will not be taxable

Paras

Mcom CA Final

122 Points Posted on 12 June 2011

not taxable ... Enjoy !

:)

vandana

Accounts Officer

33 Points Posted on 12 June 2011

its exempted under income tax

vandana

Accounts Officer

33 Points Posted on 12 June 2011

hey, but clear me interest received on PF will be levied TDS

Shikha Sharma

Senior Consultant

27 Points Posted on 12 June 2011

Thanks for all the replies! Is it correct that TDS will be levied on interest received on PF?

U S Sharma

glidor@gmail.com

21068 Points Posted on 12 June 2011

Originally posted by : Shikha Sharma
	Thanks for all the replies! Is it correct that TDS will be levied on interest received on PF?

without completion of 5 years of service, such withdrawls are taken back in "salary" and get taxed, thats why the tax is back on such withdrawls p[rior or five years,

as per recent developments through court judgements ,4 complete Years + 240 days is limit

Shikha Sharma

Senior Consultant

27 Points Posted on 12 June 2011

Thank you so much for the info. Can you also tell me where I can look this ruling up so that I should be able to quote it, if required?

U S Sharma

glidor@gmail.com

21068 Points Posted on 12 June 2011

as EPF contribution is covered under sec 80C of incometax, here 5 years lock in is mandatory, ( as per court , after 240 days the employee is deemed to have completed a year of service), so all such EPF contributions if not fulfilled by 80C conditions and withdrawn within time limit, then same has to be taken back in taxable income in the year of withdrawl as per 80C provisions.