Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

Tax Deduction on PF Withdrawal

Shyam Khandelwal (Consultant) (58 Points)

19 May 2010

HI,

I have worked in a company for 3 1/2 years. I have recently changed the company.

If I withdraw PF of my previous company, will it attract tax or will I get the full amount ?

Reply
Follow
Share

3 Replies

Anuraag Sharma (Sr Executive Finance) (845 Points)
Replied 21 May 2010

First you should consider the following:

Whether The PF account you were holding wih your previous year is a Recognised PF or an Unrecognised PF?
Whether such withdrawal is allowed on or before completion of 5 years from the date of Holding of such an a/c with your previous employer?

Now if such wothdrawal is aloowable....then you can withdraw Money from your PF a/c and there will be NO deduction of tax if it is RECOGNISED....

however in case of an UNRECOGNISED PF such withdrwal shall be liable for Deduction of Tax at Source as per the provision of the Income tax act for the relevant assessment year