Curious About PF Withdrawal Tax After 5 Years? Here's What You Need to Know

Hi,

I joined a company in July 2003 and left in September 2006. Now, I am planning to withdraw the PF money. What percentage of tax am I liable to pay? I heard that after 5 years, there won't be any tax deductions. Is it true, and if so, is it from the joining date?

Thank you.

In India, as per current tax laws, if you withdraw your PF amount after 5 continuous years of service, the withdrawal is tax-free. The 5-year period is calculated from the start of your employment with the first employer contributing to your EPF account. Since you joined in July 2003 and left in September 2006, your service period is less than 5 years. Therefore, if you withdraw your PF now, it may be subject to taxation. It's advisable to consult with a tax expert or the Employees' Provident Fund Organization (EPFO) for precise details based on your specific case.