Is Your PF Withdrawal Before 5 Years Taxable? Seeking Clarity on Tax Rules

Hi,

Can anyone tell me whether the PF withdrawn before completion of 5 years of service is taxable? What does the act say regarding the taxation on withdrawal? An insight into this would help.

Regards,
Parul Parmar

Dear PF withdrawal at any time is taxable except at the time of superannuation. I would like to know more comments from CiteHR.

Thanks,
J. S. Malik

Hi Parul,

If your PF account is maintained by EPFO, under any circumstances PF withdrawal is not taxable.

If your PF account is maintained by a PF trust, then it depends on trust rules.

Please check with your organization before you apply for PF withdrawal.

Thanks and regards,
Sunitha.

PF/Superannuation withdrawal before completion of 5 years of service is subject to income tax/TDS by the PF Department as per the Income Tax Act.

Thank you.