Suppose, I have exited from my current job and started a new one and I've not transferred the PF account from previous to current employer. Two separate PF accounts are there within the same UAN. If I withdraw PF amount of the previous job's account, will it be taxable? ( Service in previous job is almost one year)
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Withdrawal of PF amount - is it taxable?
Replies (4)
Quick Summary
If you withdraw PF before completion of 5 years of service then TDS will be deducted u/s 192A @ 10%, yes it will be taxable
Yes, it's taxable.
If you have joined in the previous company for the first time then PF withdrawal is taxable.
Can you provide your total experience and date of first employment
Can you provide your total experience and date of first employment
PF withdrawal on job change:
• If you withdraw PF on leaving a job (without transferring to the new employer), taxability depends on total continuous service (including service with previous employers if PF was transferred): if 5 years or more, it's exempt (Sec 10(12)). If less than 5 years, the employer's contribution plus interest is taxable as salary, interest on your contribution is Other Sources, and your own contribution is taxable to the extent 80C was claimed. TDS under 192A at 10% if above Rs 50,000.
• Better: transfer the PF to the new employer's account (continuity of service counts for 5 years).
• Note: interest on your contributions above Rs 2.5 lakh a year is taxable annually regardless.
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