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Tax exemtion on pf deducted by employer

shibsankar (Asst. Manager - Accountants) (119 Points)

14 January 2016

Hi Everyone,

One of my friend changed his job. He worked for 3 and 1/2 years in his previous company.

He left his job in Nov 2015. His earlier employer deducted PF from his Salary on monthly basis.

My query is, Does the PF Amount for the period Apr to Nov 2015 is exempted from Income tax?

Or do i need to consider this as Taxable income?

Thanks

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3 Replies

CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 14 January 2016

Claim Deduction U/s 80C of Income Tax Act 1961. First It Will Be Included In Your Total Salary

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 14 January 2016

EPF contribution is available for deduction under 80C, but if the employee opt to withdraw the amount before completion of five years then the whole amount would be liable for taxation ( at present EPF deducts TDS at the time of payment)

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 14 January 2016

Originally posted by : shibsankar
	Hi Everyone, One of my friend changed his job. He worked for 3 and 1/2 years in his previous company. He left his job in Nov 2015. His earlier employer deducted PF from his Salary on monthly basis. My query is, Does the PF Amount for the period Apr to Nov 2015 is exempted from Income tax? Or do i need to consider this as Taxable income? Thanks