recognised provident fund

This query is : Resolved

ravi. (Querist)
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07 July 2010 How the tax treatment will be when employee has left the service after 3 yrs. of service and received accumulated sum from RPF as it will be treated as URPF also employee has filed ROI? In which year it will be taxed as it will be treated nw as URPF ?

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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09 July 2010 It will not be treated as URPF.

However, this amount will be taxable in the hands of employee and whole amount will be included in his total income in that year in which he receives the same.

NOTE: please check whether tax is deducted at the time of payment or not.

Regards!!!

ravi.

ravi. (Querist)
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09 July 2010 but sir. the Act says that if employee left the company before 5 years of completion of service and withdraws the amount from RPF, then it will treated as URPF at the time of withdrawal..
so sir how the employee's contribution of provident fund will be treated at the time of withdrawal ?

thank you very much sir for your reply..

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