Dear friends,
An employee has been working in a company 'X' for the past 15 years. He then resigned and joined 'Y' where he worked for 2 years. He was paid PF in both the companies. Company X transferred his PF account to company Y and the same continues till date. He now wishes to draw the whole amount of PF in his account.
As per Sec10(12) of the Income tax Act, balance in PF account payable to the employee is exempt if he is in continuous employment for a period of 5 years.
My question is, in the current scenario where the employee wants to draw the entire PF, is the PF received from company Y exempt from tax? Can he claim exemption for the full PF amount received from companies X and Y?
CAclubindia
