Tax on PF withdrawal
This query is : Resolved
CA Ankit Shah
(Querist)
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?
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
(Expert)
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3Yrs in X and 3 Years in Y, the entire balance can be withdrawn as the 5 years completion requirement fulfills.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.
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3Yrs in X and 3 Years in Y, the entire balance can be withdrawn as the 5 years completion requirement fulfills.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.
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