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Query regarding taxability of provident fund contribution

01 September 2019

hi,

I have a done a job in an private company from Jan 16 to june 16 and on which company has deducted PF contribution from salary.

and today I like to withdraw the above amount.

pls.tell me the taxability in this year PY 19-20??

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5 Replies

gopal (article assitent) (41 Points)
Replied 01 September 2019

if you withdraw PF amount without rendering 5 year continuous service then it is taxable under head salary. and epfo also deduct tds @ 10% if payment is more than 50000/-.

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Pranav Aggarwal (469 Points)
Replied 01 September 2019

so in my case it I'll be taxable in this year of whole amount

gopal (article assitent) (41 Points)
Replied 01 September 2019

taxble in the year of amount received

Suresh Thiyagarajan (Student) (3986 Points)
Replied 01 September 2019

1. If you have not rendered continuous service for 5 years and you have withdrwan then the same will be liable to tax in the year of withdrawal.
2. For the purpose of computing the service period of 5 years, previous employers are also taken into consideration. If the amount of withdrawal exceeds Rs. 50,000 then TDS will be deducted u/s 192A @ 10%.
3. Employers portion will be taxable under the head salary and employee portion if not claimed deduction u/s 80C will not be taxable. If deduction claimed then it will also be taxable under the head salary and interest earned on both contributions will be taxable under the head IOS.
Please correct me if the above solution has an alternative view.

Kapadia Pravin (17254 Points)
Replied 01 September 2019

I think TDS deducted is @ 30% maximum slab rate - on Employer contribution together with interest accumulated on both employer and Employee contribution.