Taxability of withdrawal from PF

This query is : Resolved

Purav (Querist)
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29 January 2011 An Individual had worked for 2 years in a company. Now he changes his job. He does not trf the PF bal but withdraws the whole amount. The break up of the amount received by withdrawing from PF is as under:
1. Employee's Contribution - Rs. 20000/-
2. Int. on Employee's Cont - Rs. 1500/-
3. Employer's Contribution - Rs. 20000/-
4. Int. on Employer's Contr.- Rs 1500/-

Total amount Recd - Rs. 43000/-

What shall be the tax effect on the above withdrawal?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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29 January 2011 2. Int. on Employee's Cont - Rs. 1500/-
3. Employer's Contribution - Rs. 20000/-
4. Int. on Employer's Contr.- Rs. 1500/-

To be taxed.

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