In case of PF withdrawal before 5 years of service, there is TDS of 10% and it is taxable.
My question is whether there is flat tax rate for this or chargeable as normal Slab rate?
Is this possible it will be charged at 30% in case of Higher slab applicable.
8 Replies
Vinay verma
(CA FINAL STUDENT)
(96 Points)
Replied 01 March 2020
What is treatment when PAN furnished? What is MMR
MOHIT JOSHI
(229 Points)
Replied 01 March 2020
After completion of 5 years of employment on TDS if not amount is more than 50k then TDS @ 10%
Vinay verma
(CA FINAL STUDENT)
(96 Points)
Replied 02 March 2020
My question is different... in case of PF withdrawal before completion of 5 years. How it will be taxed, taxable as per slab rate or any flat tax rate available?
MOHIT JOSHI
(229 Points)
Replied 02 March 2020
Individual hence slab rate while calculation of tax for year end
Vinay verma
(CA FINAL STUDENT)
(96 Points)
Replied 02 March 2020
Ok thanks, I can planning like..... I will withdraw PF in the year in which I have low income so that Tax liability will reduce. In the FY 2019-20, My income is 7 lac and I will withdraw PF of Rs. 6 lac in this year mean my total income will be 13 lac. Can I withdraw in next year because next year my income will reduce?
Nandakumar K Konkar
(Partner)
(246 Points)
Replied 02 March 2020
Tax planning is up-to you to decide, but tax treatment is as told by Mohit.
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