01 January 2013
I have a doubt regarding the taxability of Provident Fund. An assessee has changed 5 companies, all in which PF was deducted. He withdrew the accumulated amount of PF from the first 2 companies. The PF accumulated in the remaining 3 companies is not withdrawn by him till now. Also, the amount stands outstanding in separate accounts, i.e. the PF accumulated in the 3rd and 4th company was not transferred to the 5th company’s account. The tenure of each of the 3 employments is less than 5 years. (Total of these exceeds 5 years). Currently, the assessee is self-employed. My first query is can the assessee transfer the amounts accumulated in 3rd and 4th company to the fifth company, which he has resigned from in the current year? My second query is what will be the taxability of PF withdrawn separately?
03 January 2013
Thanks for the suggestion!! The assessee is has crossed the age of 60. Hence, i suppose, withdrawing the amount will be beneficial.. Would like your views on the same..
CAclubindia
