Friends One of my client done employment in colgate palmolive at Hyd he had 550000/- in his PF accoun now he apply for withdrawal of taht PF, They deducted TDS at 30%
my doubt under which head this PF is Returned and in myopenion all this 550000/- is exempt from tax
25 May 2012
If it is recognised Pf, withdrawl is not taxable if he renders 5 yrs of continious service, 5 yrs includes previous services also, but accumulated balance in previous RPF should have been transfered to this RPF A/c. more conditions are there.... check RPF for details... Other wise it would be treated as unrecognised PF and employee contribution is exempt, interest is chargable as income from other source and balance amount is chargable as Salaries.
CAclubindia
