tejal (Article) (42 Points)
26 March 2015I had received a lumpsum amount as employees provident fund contribution from RPF for Fy 12-13. Tds has been deducted on the same.I had withdrawn the amount before 5 years. Please tell me the tax position for the same.The tds deducted can be claim as refund or it is taxable.
CA HAYEDAR SHAIKH
(Practice )
(622 Points)
Replied 26 March 2015
Dear Tejal,
Go through the following for better understanding -
Withdrawal from RPF at the time of termination of service, the accumulated balance is exempt from tax only if you have been in continuous service for a period of five years or more. Service rendered to the previous employer is also to be included. If the continuous service is less than five years due to reasons beyond your control (ill health, or discontinuance of employer’s business), you still will be eligible for exemption. If not, then you will be taxed on withdrawal of the accumulated balance from the RPF.
Hope this will help you to solve the problem.
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