Svsrana
Hr Head With Pmi
Gaggan_sahni
Hr Manager
Blissabhay
Human Resources
Md Meraj
Hr Business Partner
PraveenHR
Service
Ray052
Project Manager
+1 Other

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Hi
pls help to answer me the following questions:
will Pf withdrawal from Regional Provident Fund or Inhouse Trust will taxable to resigned or left employees
waiting for your suggestion and replies
Bliss

From India, Mumbai
PF is retirement benefit.
So in case of resignation it should be transferred to the Trust /RPFC of the next employer.
PF can be withdrawn tax free in cases of resignations if the employee is leaving the country for good and produces proof thereof.
Or starts own business.
The PF is tax free if withdrawn at the time of retirement.
In case it is kept with the trust even after retirement then all the eanings after that date are technically taxable.
Since the subject is sensitive one you should have a clearcut guideline from a good tax consultant before taking any action.
Best Regards


PF withdrawal is not taxable from Trust/RPFC in any circumstances.
If you leave company and want to withdraw your PF and Pension you need to fill up form 19 & Form 10C (only after 60 days of your leaving the company). or if you want to transfer the same to the new company in that case you need to get the form13(revised) filled up from your new employer and the same is to be sent to your previous employer.
These forms are available on "www.epfindia.nic.in"
Warm Regards,
Praveen Sharma
098-1000-6022

From India, Delhi
Thanks for the prompt reply
but i am still confused with different replies, can income tax authorities put tax liabilities on pf withdrawl income. As of now there is no clear guildlines such income.
Bilss

From India, Mumbai
DEAR ALL,
PLS NOTE THAT EPF IN RPFC DOES NOT DEDUCT ANY TAX AT SOURCE WHILE REIMBURSING THE PF MONEY...BUT IF U WITHDRAW MONEY BEFORE THE 5 YEARS DURATION IT IS TAXABLE AMOUNT AND U NEED TO SHOW THE SAME WHEN U FILE UR YEARLY RETURN........
INCASE THE MONEY IS WITH YOUR COMPANY TRUST THEY WOULD DEDUCT TAX AND REIMBURSE THE MONEY....THE TAX WOULD BE SAME AS REVERSAL OF THE BENEFIT TAKEN BY YOU DURING THE FINANCIAL YEAR.....
MONEY WITHDRAWAL BEFORE 5 YEARS IS TAXABLE AND THE AMOUNT NEED TO BE SHOWN IN YOUR RETURN.....
RGDS
GAGAN

From United Kingdom
hi Gagan i agreed on clarification,some people withdraw their Pf money frequently and even not shown in the annual tax return. Bliss
From India, Mumbai
Hi Bliss,
Thanks for bringing up this topic as I too needed some clarification on the same....
Gagan, you have given a clear cut clarification on this, thank you for that. However not sure how important it is to declare this during IT filing and incase if it is not done then what could be done later...Please show some light on this..
Regards,
Ray

From India, Bangalore
SIMPLE BUDDY THIS BECOMES UR BLACK MONEY THEN...BECAUSE SMALL CASES DONT APPEAR IN SCRUTINY BY IT DEPT AS THEY ARE MORE INTERESTED IN BIG FISHES.....HENCE NORMALLY U GET SCOT FREE....SO DONT WORRY ENJOY LIFE...ITS UR BLACK MONEY NOW OR TRY TO INVEST THIS MONEY IN PPF IN BANK ..............
From United Kingdom
Gagan, Appreciate your input. Very few people acyually know that PF withdrawal before 5 years is taxable. Meraj

Gagan is right..........
if you have resigned recently n withdrawn ur pf, then wait till june end nextr year.. the company shall be mailing the TDS certfictae tooo...
happnened wth me too when i was there in HCL, they hv a inhouse PF scheme..
surya

From India, Delhi

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