Tax on Withrawal of Provident Fund

This query is : Open

ritu pandey (Querist)
Follow

21 August 2008 Hi,

I was working with a company in India for 2 yrs 7 months. This was my first ever job. After this I moved to London,UK and joined a company here. Now I want to withdraw my PF from India. Will the pf I withdraw be taxed? If yes at what rate?

Thanks.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

06 September 2008 On a perusal of section 10(12) read along with rule 8 of part A of schedule 1V of the income tax act 1961 your pf withdrawal is taxable. Rate of tax will depend upon the income since it is taxed at a graded rate say 10%,20% etc.

Message likes : 1 times

Juzer Sadikot

Juzer Sadikot (Expert)
Follow

21 July 2010 Dear Chakrapani Sir,

Please help me to understand following:

1) PF withdrawal is taxable in India - is it true if the PF trust complies/registered under Part A - Schedule IV to the Act?

2) Mere fact that the ex-employee is outside India - It will affect the taxability of PF in her name assuming PF trust is recognized.

3) Is there any time limit upto which withdrawal is not permissible or if withdrawn then may affect taxability?

Awaiting for your expert opinion.

Regards
Juzer

Upgrade to CAclubindia Pro. Subscribe Now!