Hi,
I am in a process of PF amount withdrawal for my total service of 8 years.
I have worked for about 7 years in my first organization & joined another organization to which i got transferred the PF amount contributed during my service in first organization,
I have left the second organization after 11 months which goes to a total service near to (7+1) 8 Years,
Has I am not working in any organization from last 1 year instead doing own business outside India, Hence I am in a process of withdrawing the PF amount contributed for 8 years, PF office of second organization is explaining me that there will be deduction of 30% towards income tax + 3% service charges on total PF amount contributed (including PF contribution of First organization) as I have less than 5 years’ service in second organization.
Please clarify will this 30% income tax will be applicable in the above case, if not what will be the actual tax & service tax applicable.
Many Thanks
CAclubindia
