Understanding PF Withdrawal: Will My Short-Term Job Stints Make It Taxable?

I have joined a software firm "A" in January 2005 and left it in August 2006. This means I worked there for only 20 months. After that, I joined another firm "B" in September 2006 and left in December 2007, which amounts to 16 months of work there.

So, in Company A - 20 months
In Company B - 16 months

I have not transferred my PF from A to B, and neither from B to my current company, C.

Now, my question is, if I withdraw my PF from both Company A and B, will it be taxable? Please suggest the withdrawal process.

Thanks in advance,
Harish

PF amount is not taxable. Approach the PF office or download the form and send it to your past employer. He has to sign and send it to the PF Office.

Siva

Hello friends,

If we go for studies after working in a firm, is it possible to withdraw that money from the account?

Rakesh R

Dear Mr. Rakesh,

Yes, it is possible to withdraw.

Siva

NB

When filling out an application, please use normal English!!! PF authorities do not understand SMS and chat language!!!!

Best wishes

Thank you for your reply.

Based on my knowledge gathered from various forums, the tax on the PF amount depends on whether the account is with the Government or a charitable trust. Some forums suggest that the Company contribution will not be taxable, but the Employee Contribution will be taxable if the employee leaves the company before 5 years or does not continue the same PF account for a certain duration (with another company).

As a result, I am in a dilemma. Is there a website, similar to the Income Tax website, where we can find detailed and authentic information on this matter?

Thank you,
Harish

Hi friend,

I do not know where you got fancy words like charitable trust. We cannot run a charitable trust on PF. Whether we deposit with the Govt EPFO or the company has its own trust, it is not taxable. The only way it will fall under income tax is if your organization is not covered under PF, and if your organization is contributing to forming a trust, you can come under the purview if your organization has not taken an exemption under the IT Act. This is a very remote possibility and does not happen nowadays.

I am sorry; I have no idea about any person with authenticity on this subject. Any good auditor, in my opinion, can guide you. Incidentally, what is the amount involved?

Siva