Tax on PF withdrawal

This query is : Resolved

CA Ankit Shah (Querist)
Follow

23 July 2011 Dear Friends,

If someone work with X Co. for 3 years AND then with Y Co. for another 3 years.

Query regarding taxability on PF withdrawal:

1. PF balance with X ltd AND PF balance with Y LTd: (without PF account transfer from X LTd to Y ltd.): total PF account holding period exceed 5 years.

2. PF balance with X ltd transferred to Y ltd.: total PF account holding period exceed 5 years.

Now.

1. 1st option valid or compulsory to transfer PF to Y company?

2. whether in both cases total PF can be withdrawan?

3. Taxliability on PF withdrawal in both cases, same of different?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

23 July 2011 PF balance has to be transferred to the new
company Y. After completion of 6 years,
3Yrs in X and 3 Years in Y, the entire balance can be withdrawn as the 5 years completion requirement fulfills.

If you withdraw separately from each account, without transferring the balance of X to Y then in both the cases it may be treated as prematured withdrawals and taxed accordingly.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

nilesh

NITHIN GEORGE

N.VENKATARAMAN

Rajat Khandelwal

PIYUSHBHAIPOPAT

Subscribe Now

Tax on PF withdrawal

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

CA Final

Manager- Finance and Compliance

GST CONSULTANT

Accountant

GST CONSULTANCY