Hello there,
I have total of 4.5 years of job experience.
Job 1) 3 years
Job 2) 1.5 years
There was not gap between job 1 & 2, and PF was transferred to new companies PF account.
But after 1.5 years at job 2, company closed, but on good faith, we were given time to gracefully resign (i.e. no termination from company side)
Currently I don't have any job. My 4.5 years of experience ended on Feb, 2015.
Now, my question is, will the PF withdrawal after Aug 2015 (i.e after completing 5 years since first PF submitted) will have tax liability?
From India, New Delhi
I have total of 4.5 years of job experience.
Job 1) 3 years
Job 2) 1.5 years
There was not gap between job 1 & 2, and PF was transferred to new companies PF account.
But after 1.5 years at job 2, company closed, but on good faith, we were given time to gracefully resign (i.e. no termination from company side)
Currently I don't have any job. My 4.5 years of experience ended on Feb, 2015.
Now, my question is, will the PF withdrawal after Aug 2015 (i.e after completing 5 years since first PF submitted) will have tax liability?
From India, New Delhi
Tax on EPF withdrawal | Be Money Aware Blog
Please refer this link.It deals with PF withdrawals and tax ability.
You had to stop working because business closed,this special case is also dealt with in this informative link. link
From India, Pune
3124Please refer this link.It deals with PF withdrawals and tax ability.
You had to stop working because business closed,this special case is also dealt with in this informative link. link
From India, Pune
See u will not have any tax deduction on u r EPF claim amount ... But now there is a new rule was implemented in EPF organisation that is person who work less than 5 years and the claim amount exceeds more than 30000 then TDS deduction will be there ..........
From India, Chennai
From India, Chennai
Dear Dhawalbanker,
Generally Income Tax is applicable on PF if service is below 5 years and amount is above Rs. 30,000 (for both PF amount and withdrawal benefit from pension fund). But cessation of service is due to closure of the establishment, the amount may not attract Income Tax, provided you could produce the evidence. However you consult with the Income Tax & PF authorities.
Abbas.P.S
From India, Bangalore
Generally Income Tax is applicable on PF if service is below 5 years and amount is above Rs. 30,000 (for both PF amount and withdrawal benefit from pension fund). But cessation of service is due to closure of the establishment, the amount may not attract Income Tax, provided you could produce the evidence. However you consult with the Income Tax & PF authorities.
Abbas.P.S
From India, Bangalore
My main question still remains unanswered. Is it 5 years of continuous service or 5 years since the first PF account was opened?
I am based in Pune. What is the proper way to get communicate with Tax & PF authorities? I would prefer online first.
From India, New Delhi
I am based in Pune. What is the proper way to get communicate with Tax & PF authorities? I would prefer online first.
From India, New Delhi
Dhawalbanker,
Did you read the link which I have put up?
Under the provisions of Income tax laws, withdrawal from the PF account by an employee without rendering continuous service for five years or more to the employer attracts tax.
This is an extract from the article.
From India, Pune
Did you read the link which I have put up?
Under the provisions of Income tax laws, withdrawal from the PF account by an employee without rendering continuous service for five years or more to the employer attracts tax.
This is an extract from the article.
From India, Pune
By my question still remains unanswered. What is the definition of "continuous 5 years of service"?
From India, New Delhi
From India, New Delhi
Dear Dhawalbanker, In EPF, Continuous service means total service period after deducting non contributory period, if any. Abbas.P.S
From India, Bangalore
From India, Bangalore
Ah, I forgot to mentioned one info in the questions.
When I said company closed, it didn't actually closed. They just told all the employees to resign gracefully. But the company, on paper, is still running.
So, my PF is good with interest till 3 years from last month of PF contributory month. Before that if company also closes on paper, I can withdraw PF without tax, right?
From India, New Delhi
When I said company closed, it didn't actually closed. They just told all the employees to resign gracefully. But the company, on paper, is still running.
So, my PF is good with interest till 3 years from last month of PF contributory month. Before that if company also closes on paper, I can withdraw PF without tax, right?
From India, New Delhi
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Early PF withdrawal won’t be easy.pdf
Guide Lines for PF Withdrawal.doc