CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 19 December 2011
Roshan ji,
If that PF is URPF then there will be tax liability on Employer's contribution and interest thereon under the head salaries and the interest on employees contribution will be taxable under the head income from other sources.
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 19 December 2011
if provident fund is recognised and statutory then it will be exempt and in case of unrecognised it will be taxable
CA Hardik Bunha
(self)
(2121 Points)
Replied 19 December 2011
UNRECOGNISED PF - TAXABLE
RECOGNISED PF - EXEMPT
STATUTOTY PF - EXEMPT
INTEREST OF PF EMPLOYEE CONTRIBUTION - TAXABLE
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 19 December 2011
| Originally posted by : Roshan Alwani | ||
 |
Hello Guys, I would like to know is PF contributions taxable on withdrawal?? Thanks in Advance, Roshan |
 |
taxable if withdrawn without completion five completed years of contribution
exempted thereafter
* Krishna *
(CA Student)
(6149 Points)
Replied 19 December 2011
Agreed with US Sharma. Five year continuous working period may be with different employers.
@ Roshan: EEE means Exempt-Exempt-Exempt at various stages i.e.Deposit-Accrual-Withdrawal.
neeraj
(CA)
(930 Points)
Replied 20 December 2011
EEE means Exempt on deposit , exempt interest exempt on withdrawal.
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 20 December 2011
yes i agree with U S Sharma
taxable if withdrawn without completion five completed years of contribution
exempted thereafter even in case of recognised provident fund
Kolluru Krishna Murty
(Partner)
(315 Points)
Replied 20 December 2011
The position is as follows:
1.Employer's contribution upto 12 % of salary(which is normal )along with interest at Statutory rate (rate as declared by Central Provident Fund Trust(CPFC)) is exempt.
2.Employee's subscripttion upto12 % of salary(which is normal) along with interest at Statutory rate(rate as declared by CPFC) is exempt.
3.If the employer follows these guidelines,if it is privately managed Trustby employer,the withdrawls are fully exempt.
There is no such restriction as 5 years now for getting exemption.
kkm
Roshan A
(Chartered Accountant)
(458 Points)
Replied 21 December 2011
Guys thanks for your reply...but i think what Siddharth ,Ketan & Hardik said is for taxability at time of Contribution and not at time of withdrawal....
Correct me if i am wrong
RA
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 21 December 2011
Yes, the answer which i gave was not on the line of quest.
Mr. U. S. Sharma is correct. and i agree with them.
Thank you for correcting me.
CAclubindia
