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WITHDRAWL OF MONEY FROM PROVIDENT FUND IS TAXABLE OR NOT?

PIYUSH SINGH (student) (2471 Points)

22 January 2010

Hello all of you i have a question which is as follows:

whether the withdrawal of money from provident fund by goverment employee is taxable or not according to new direct tax code?do reply this question at the earliest.thankyou in advance.

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5 Replies

CA Bikash Biswal (Chartered Accountant) (85 Points)
Replied 22 January 2010

Withdrawal of money from any PF which is contributed by the employee is not taxable in any case

but if the fund include the part of employer contribution then it will taxable if the PF is a URPF.

if it is a RFP then only the interest part of employer contbn on PF is taxable in income from other sources.

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CA Bikash Biswal (Chartered Accountant) (85 Points)
Replied 22 January 2010

This provission has not been changed in the current budget

CA PALLAVI VOHRA (Learner) (140 Points)
Replied 30 January 2010

Hi,

I would like to add something here ,actually the interest on the portion contributed by employer is taxable only if it exceeds 12 %p.a.. And only the excess portion is taxable.