When Can I Withdraw My Provident Fund Without Facing Tax Penalties?

technowerkkg
I joined a company in 2002, but the subscription to PF started in January 2008. I left the job in May 2011. Can I know when I can withdraw PF so that it is not taxable? I am told if withdrawn within five years of service, it is taxable. But the law also states that five years of subscription to PF - if withdrawn before five years, then it is taxable.
abbasiti
Dear friends, for tax exemption, there should be a minimum of 5 years' contribution to PF. As you have only 3 years' contribution, there is no possibility of getting exempted from tax payment. Also, if your account is non-operative for more than 3 years, further interest will not be credited to your account. Hence, you have to withdraw PF on or before April 2014.

Regards,
Abbas.P.S
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute