Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Tax on PF Withdrawal

Tax queries 409 views 1 replies

Ravi K

Job

67 Points Joined January 2014

Hi,

I worked in a Company: 2003-2006 (3 years)

So, my tenure with company was less than 5 years.
But PF account itself have been there for 10 years now as i did not withdraw till date.

Now, when i withdraw PF amount in 2013.
Will this be Taxable?

I am getting mixed responses:
1. Some say that since employment was less than 5 years, it is taxable.
2. Some say that since PF account itself was for greater than 5 years (10 yrs in my case) it is not taxable.

Please advice.
Thankyou Experts

Replies (1)

Manoj Mehta

Head Of Department (Accounts & Finance)

1479 Points Joined March 2009

Dear Ravi

As per my opinion the amount will not get taxed as the amount remained in the pf for more than 5 year and hence withdrawn after 10 yea.

(For eg. see the concept when the amount got transferred from one employer to another even when the employment is for less than 5 year, but if successfully transferred then the amount is non taxable when the amount is being withdrawn from that a/c on successful completion of 5 year)

i know the e.g i gave will be lilttle confusing for you. but my "OPINION" is non- taxable in this case if you have completed successful 5 years)

Regards