Waiting for My PF Withdrawal: Is It Taxable After 5 Years of Service?

Dear Sir/Madam,

I will complete 5 years by April 30, 2009. However, I applied for withdrawal of PF amount in the first week of March 2009. Until now, I haven't received the amount from the PF office. Is the amount taxable or not? Please let me know.

Thank you.

Dear PF withdrawal does not have any relation with the number of years of service. You should confirm with the PF department, and if you have deposited your form in the first week of March, then you should have received it by now. PF amount withdrawal at the time of superannuation is not taxable; however, if you withdraw it in between, then it is taxable.

Thank you,
J S Malik

Dear Ms. Swetha,

When the company has a trust, the PF amount is subject to tax unless the employee does not complete 5 years of service at ABB. If the service period exceeds 5 years, then the PF amount is tax-free.

If the company does not have a trust and maintains the PF with the government office, then it is entirely tax-free (years of service will not be a factor).

Normally, it takes 60 days for PF withdrawal, which in professional terms, we could refer to as a waiting period.

Regards, Manju

Hi, it's not a matter of how many years you have completed. When you ask your present employer, provide the submission copy, carry the same copy to the PF office, and check the status.

Dear Manju,

I do not agree with your statement about income tax on PF withdrawal. In my view, it is taxable. PF withdrawal is not taxable on superannuation; otherwise, it is taxable. If you have any supporting documents that support your statement, it would help us.

Thanks,
J S Malik

Dear Manju,

I have a query regarding this PF only. The thing is when I am moving out from my first company, I transferred the PF amount to the account which I applied for withdrawal. How will I come to know that my first company PF amount is transferred to this account? Is there any way to find out?

Regards,
Swetha M.