Confused About Tax on EPF and Family Pension Fund Withdrawal? Need Clarification!

Hi,

Thanks for providing valuable information on this forum. I have a query and need help understanding it. I worked for a company for 6 years and contributed to EPF every month. Upon leaving the job, I applied for the withdrawal of PF. After 3 months, I noticed 2 amounts credited to my account - one small and one big. My company's accountant informed me that these are from the Family Pension Fund and Provident Fund. He mentioned that since I contributed for more than 5 years in EPF, I don't need to pay tax on EPF withdrawal, but tax will be applicable on the family pension fund amount (the small amount).

My concern is that the PF department did not provide any letter or information regarding how they calculated the balance in my account, whether tax has been deducted or not. Hence, I need help to clarify the following:
1) Is the family pension fund amount received from EPF organization subject to taxation?
2) Has the EPF organization already deducted tax on it?

Thank you in advance for your assistance.
--Satish :-D

Dear Satish,

It is 8.33% for PF amount and 3.67% for the pension fund. You will need to calculate the total amount, and small amounts will be liable for tax deduction. No organization deducts tax at the time of deposition.

Best Regards,
Sajid

Dear PF Department,

Does not deduct any tax at source. In my view, your complete amount drawn in PF as well as in pension should be taxable and it should be counted in your income. The PF withdrawal at the time of superannuation is not taxable; otherwise, it is taxable. You please consult any chartered accountant for this purpose.

Thank you,
J.S. Malik

Hi, I have an overall work experience of 5.5 years, having worked in two organizations. I am currently going abroad and would like to withdraw my PF. My employee share is 112,080, the employer share is 53,851, and my pension is 22,570 (pension is only shown for the current organization, which is only two years).

Questions Regarding PF Withdrawal and Pension

1. How much tax will be deducted if I withdraw now?
2. What will happen to my previous employment pension?
3. Will I receive any pension amount or not?
4. Is there any tax exemption for going abroad reasons?
5. If I lose my pension (for withdrawing before 10 years), can I continue my pension? Or is there any way to save my pension alone?

Regards,
Dhakshmna