10 January 2012
I was employed with Employer A for the period July 2006 to June 2010.
Post which I moved to Employer B. Company B has total number of employees as 6. Hence my current employer is not liable to deduct PF.
In 2011 December I requested Employer A to refund my accumulated PF. Employer a manages PF through a Trust and claims that the amount accummulated so far will be subject to TDS.
I am informed that if I submit a certificate from my current employer stating that they are not liable to deduct PF then in that case Employer A should not deduct any TDS as the proceeds are tax free.
I am forced to withdraw this amount and it should not subject to Taxation. However I left the money with Employer A for over 1 year before withdrawing it so that they have the funds for 5 years in total.
Please can someone clarify the following?
1. Is the Pf accummulated taxable? 2. Is TDS mandatory for a Trust? 3. Can I claim a refund for the TDS done?