Subhash Saluja (Accountant) (40 Points)
20 May 2010I have worked in an organsiaiton for a period of 3 years and now I want to wtihdraw my PF accumulation whether it will attract TDS or not.?
$wap$
(Assistant Auditor)
(189 Points)
Replied 20 May 2010
yes PF amount is taxable if withdrawn.. better transfer to new employer's PF account
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 20 May 2010
It will not attract TDS but it will be taxed in Income from Other Sources.
CA Ankit Totla
(Practicing Chartered Accountant)
(469 Points)
Replied 20 May 2010
taxable income... get the PF transfered 2 avoid taxation...
SUDHIR & PRADEEP JI
(CA FINAL+LLB + DISA)
(2299 Points)
Replied 20 May 2010
it will not attrached the TDS but it will be taxable as other sources income,
if u want to aviod tax get trnasfered to the new employer pf account
Rachit
(Analyst)
(913 Points)
Replied 20 May 2010
| Originally posted by : Shudhanshu Agrawal | ||
 |
It will not attract TDS but it will be taxed in Income from Other Sources. |
 |
Dear Sudhanshu & Pradeep,
TDS is attracted at the time of withdrawal of accumulated balance due to an employee in his PF account before 5 years.
Refer Rule 10 of Part A of the Fourth Schedule of the Income Tax Act, 1961.
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 20 May 2010
Thanks Mr. Rachit for correcting me.
Yes, TDS will be applicable under section 192(4).
bharatkanani
(Student CS)
(15 Points)
Replied 21 May 2010
This should be dealt with the following :
1) Is it a case of Reversal of 80 C benifit on account of PF withdrawal within a period of 3 years ?
2) Employers contribution to PF will it be taxable as Income From Salary ?
3) Interest on Employers and Own contribution will be taxable as Income from other sources.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
