Withdrawal from recognized provident fund

Tax queries 116 views 1 replies

Taxable treatment for recognized provident fund, if employee cease the job before completion of 5 years but trustee retains the funds for more than 5 years i.e. even after employee left the job .

Replies (1)

Below is the related extract from Income Tax Rules

8. The accumulated balance due and becoming payable to an employee participating in a recognised provident fund shall be excluded from the computation of his total income—

(i) if he has rendered continuous service with his employer for a period of five years or more, or

(ii) if, though he has not rendered such continuous service,

the service has been terminated by reason of the employee's ill-health, or by the contraction or discontinuance of the employer's business or other cause beyond the control of the employee.


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