Will My PF Withdrawal Be Tax-Free After Job Changes and 5 Years of Service?

Hi,

For 2 years, my PF was with the Govt EPFO, and later on, I changed jobs, and it was transferred to the PF trust account maintained by the new employer. I worked for 4 years, and now I want to withdraw the PF amount. I want to know if the above services rendered will be considered as continuous service of more than 5 years and TDS not deducted while processing my PF amount.

Regards,
Anand

Dear,

I have not read anywhere that if PF accumulation is more than five years, no tax will be payable on it. If anyone is confident or has some ruling, please forward the ruling.

In my view, all PF withdrawn before superannuation is taxable.

Regards,
J. S. Malik

Mahesh Padmanabhan explains that PF withdrawal is not taxable only if a person has been in continuous service for 5 years. In your case, if you have a PF balance from your previous employer, that balance should have been transferred from your previous employer to your current employer. The period of service from both employers would need to be aggregated to determine if you have completed 5 years of continuous service.