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Tax on PF Withdrawal

Tax queries 458 views 1 replies

Hi, 

I worked in a Company: 2003-2006 (3 years) 

So, my tenure with company was less than 5 years. 
But PF account itself have been there for 10 years now as i did not withdraw till date. 


Now, when i withdraw PF amount in 2013. 
Will this be Taxable? 

 

I am getting mixed responses: 
1. Some say that since employment was less than 5 years, it is taxable. 
2. Some say that since PF account itself was for greater than 5 years (10 yrs in my case) it is not taxable. 

 

 

Please advice. 
Thankyou Experts

 

Replies (1)

Dear Ravi 

As per my opinion the amount will not get taxed as the amount remained in the pf for more than 5 year and hence withdrawn after 10 yea. 

(For eg. see the concept when the amount got transferred from one employer to another even when the employment is for less than 5 year, but if successfully transferred then the amount is non taxable when the amount is being withdrawn from that a/c on successful completion of 5 year)

i know the e.g i gave will be lilttle confusing for you. but my "OPINION" is non- taxable in this case if you have completed successful 5 years)

Regards


CCI Pro

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