Hi,
i have some queries regarding the withdrawal of Provident Fund. Kindly guide me for these three questions.
1) what is the tax deduction in case of withdrawal of PF? As far as i know only Employee PF and interest is liable to be come under taxable income. now my question is that will they deduct the tax at the time of disbursement of amount? if yes, then how will they come to know that in which tax slab i stands as they might not be aware about my current annual income?
2) no Tax deduction after 5 yrs of service - does it mean 5 years of active account (if someone leaves the job and makes the PF transfer) or 5 years of continuous service in a single company.
3) is their any clause in Indian legal system under which any company can stop the clearance of provident fund of the employee?
Waiting for the detailed reply,
Thanks & Regards
Munish Gupta
+919848144805
From India, Hyderabad
i have some queries regarding the withdrawal of Provident Fund. Kindly guide me for these three questions.
1) what is the tax deduction in case of withdrawal of PF? As far as i know only Employee PF and interest is liable to be come under taxable income. now my question is that will they deduct the tax at the time of disbursement of amount? if yes, then how will they come to know that in which tax slab i stands as they might not be aware about my current annual income?
2) no Tax deduction after 5 yrs of service - does it mean 5 years of active account (if someone leaves the job and makes the PF transfer) or 5 years of continuous service in a single company.
3) is their any clause in Indian legal system under which any company can stop the clearance of provident fund of the employee?
Waiting for the detailed reply,
Thanks & Regards
Munish Gupta
+919848144805
From India, Hyderabad
Reply:
1) what is the tax deduction in case of withdrawal of PF? As far as i know only Employee PF and interest is liable to be come under taxable income. now my question is that will they deduct the tax at the time of disbursement of amount? if yes, then how will they come to know that in which tax slab i stands as they might not be aware about my current annual income?
No TDS is deducted on withdrawal
2) no Tax deduction after 5 yrs of service - does it mean 5 years of active account (if someone leaves the job and makes the PF transfer) or 5 years of continuous service in a single company.
As per point 01
3) is their any clause in Indian legal system under which any company can stop the clearance of provident fund of the employee?
As per law, Accumulations can not be ceased or attached under any award of court of law; accordingly any employer can not stop the clearance of provident fund of the employee. Even if in case the employer is not traceable, RPFC or the Bank Managers can attest the employee details for the withdrawal of PF.
From India, Jaipur
341) what is the tax deduction in case of withdrawal of PF? As far as i know only Employee PF and interest is liable to be come under taxable income. now my question is that will they deduct the tax at the time of disbursement of amount? if yes, then how will they come to know that in which tax slab i stands as they might not be aware about my current annual income?
No TDS is deducted on withdrawal
2) no Tax deduction after 5 yrs of service - does it mean 5 years of active account (if someone leaves the job and makes the PF transfer) or 5 years of continuous service in a single company.
As per point 01
3) is their any clause in Indian legal system under which any company can stop the clearance of provident fund of the employee?
As per law, Accumulations can not be ceased or attached under any award of court of law; accordingly any employer can not stop the clearance of provident fund of the employee. Even if in case the employer is not traceable, RPFC or the Bank Managers can attest the employee details for the withdrawal of PF.
From India, Jaipur
Hi Anurag,
in these forums only i had studied somewhere that a tax of 30% will be deducted. my PF account is with Noida, UP.
about second question, could you make it more clear i.e 5 years of active account (if someone leaves the job and makes the PF transfer) or 5 years of continuous service in a single company.
Thanks & Regards
Munish
From India, Hyderabad
in these forums only i had studied somewhere that a tax of 30% will be deducted. my PF account is with Noida, UP.
about second question, could you make it more clear i.e 5 years of active account (if someone leaves the job and makes the PF transfer) or 5 years of continuous service in a single company.
Thanks & Regards
Munish
From India, Hyderabad
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