31 October 2013
I was working for a Company that had EPF. I joined in Apr 2005 & left the Co. in Dec 2008 (3 years 8 months) All these years I had left the EPF amount with the company's trust. But I want to withdraw it now. Will it attract tax on withdrawal?
31 October 2013
Where the PF amount is withdrawn before five years of continuous service, it may be taxable in the hands of the individual as if the fund was not recognised from the start of the contributions. In such a case, payment received by the individual in respect of the employer’s contribution along with the interest accrual thereon is taxed as “salary”.
Interest on the employee’s contribution is taxable as “other income”. Payment received in respect of the employee’s own contribution is exempt from tax (to the extent not claimed as a deduction earlier).
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