Implications of income tax on pf withdrawal

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2012 Hi,
I joined a company in Mar 2006 and resigned in May 2009 (served less than 5 yrs).
I opted for withdrawal of my PF balance in Sept 2011 (after completion of 5 yrs from date of joining the company)
I received an amount which is very much lower than what I have accumulated in that account.
Does it mean that PF office deducted TDS on PF withdrawal ?
Does this PF withdrawal attracts income tax (withdrew after 5 yrs)?
Thanks in Advance for the reply

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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16 June 2012 Yes, TDS will be deducted @10% bt PF Office since you have completed 5 years of service to the company.
The service is to rendered for 5 years.You should approach the PF office in this regard, they must have deducted the TDS on such amount.

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2012 I am sorry Mr. Amit, I am not clear. I did not serve for 5 yrs with the company. I worked there for around 3 yrs but withdrew my PF after 5 yrs.
In that case, what will be the IT implication?

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CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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18 June 2012 As I said in my earlier reply, You should have served for atleast 5 years then only you are eligible for exemption from tax otherwise TDS will be deducted.