Hi,
I have worked in one company A for 1.5yrs. and then after joined another company B and worked for 4years over there. I have transfered my first company PF to my new company. Amount has been transfered. I have left company B and joined company C. Now, i would like to width row my PF amount from my previous company B.
My Queries : (1) Is this whole amount taxable?
(2) If yes how much amount would be taxable.
(3) Total 5yrs would be considered or last company's 4yrs would be considered and whether it would be taxable or non-taxable?
Thanks in advance..!!
regards,
Vinay

From India, Pune
Dear Vinay, Please see this attached file(got from etaxindia). it may help you to calculate the actual amount of taxables........ regards. Jawed Alam
From India, Dhanbad

Attached Files (Download Requires Membership)
File Type: doc Table showing tax treatment of provident funds.doc (33.0 KB, 759 views)

Thanks Jawed for prompt reply. I appreciate your help. I have gone through attached document but it could not solved much my queries.
My basic query is whether it would be taxable or not as duration is more than 5years if we consider both company's tenure. In this document, they have just said if amount is transferred for below 5yrs. tenure to new company that would be exempted. But it does not clearly mentioned about the withdrawal, if employer is changed and duration of any of single employer is less than 5yrs, In that case whether it would be taxable or not?
Thanks in advance.
Awaiting your response..!!
regards,
Vinay

From India, Pune
Dear Shri Tanwani Ji
Your own subscription to PF is not taxable. The company contribution for less than 5 years is taxable income. If the total service is more than 5 years in two or more companies, the total company contribution is not, repeat not taxable. If a firm is shut down and that is the reason for change of job or withdrawal, the company contribution is not taxable even if the length of service is less than 5 years. In your case, you have worked for more than 5 years so the employers' contribution to your PF account withdrawn by you after 5 years is not taxable.
Thanks and regards,

From India, Pune

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