18 July 2023
I have new assignment with Grasim Industries Ltd. since 14th November 2018 earlier I was working with Aditya Birla Group in PT Indo Bharat Rayon Indonesia. I have completed 4 yrs 6 months and 17 days with Grasim Industries Ltd. India before retirement hence I have deposited PF for less than 5 yrs. During my full and final settlement, I have received amount of Rs921508/- after tax deduction of 31.2%. I was not willing to retirement but as per policy I have to retire. Why PF amount is taxable if person is going to retire. Let me know PF amount is taxable for retired person.
18 July 2023
The EPF withdrawal is exempt from tax when an employee withdraws the amount after 5 years of continuous service.
There are certain exceptions where EPF withdrawals before completing five years of continuous service are not taxable, such as:
If the employee's service is terminated due to ill health, discontinuation of the employer's business, or other reasons beyond the employee's control. If the employee transfers the balance to another EPF account upon changing jobs. If the employee is permanently disabled.
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