In case of PF withdrawal before 5 years of service, there is TDS of 10% and it is taxable.
My question is whether there is flat tax rate for this or chargeable as normal Slab rate?
Is this possible it will be charged at 30% in case of Higher slab applicable.
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Tax on PF withdrawal
Replies (8)
Quick Summary
MMR IS USED WHEN EMPLOYEE HAS NOT FURNISHED PAN
What is treatment when PAN furnished? What is MMR
After completion of 5 years of employment on TDS if not amount is more than 50k then TDS @ 10%
My question is different... in case of PF withdrawal before completion of 5 years. How it will be taxed, taxable as per slab rate or any flat tax rate available?
Individual hence slab rate while calculation of tax for year end
Ok thanks, I can planning like..... I will withdraw PF in the year in which I have low income so that Tax liability will reduce. In the FY 2019-20, My income is 7 lac and I will withdraw PF of Rs. 6 lac in this year mean my total income will be 13 lac. Can I withdraw in next year because next year my income will reduce?
Tax planning is up-to you to decide, but tax treatment is as told by Mohit.
Ok thanks
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