05 March 2012
I had been with a company of less than 5 years and my epf amount has been withdrawn. I want to know how is tax calucated on EPF. For eg., the withdrawn amount has following components: A - My contribution B - Interest on my contribution C - Company contribution D - Interest on company contribution.
Will the tax be calculated on (A+B+C+D)? Also, is some kind of indexation applied over the years?
Guest
Guest
(Expert)
05 March 2012
If the amount is received from recognized PF then all the above amounts will be exempt from tax.
05 March 2012
It was a recognized PF. But I was told that if the service period is less than 5 years, withdrawn amount is taxed. I just want to know which all portions will be considered for taxation.
CAclubindia
