I have worked in company A for 1.5 years and then joined company B, where I worked for 4 years. I transferred my PF from my first company to the new one, and the amount has been transferred. I have now left company B and joined company C. I would like to withdraw my PF amount from my previous company, B.
My Queries:
1. Is the entire amount taxable?
2. If yes, how much of the amount would be taxable?
3. Will the total 5 years be considered, or just the last company's 4 years? And would it be taxable or non-taxable?
Thanks in advance!
Regards,
Vinay
From India, Pune
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My Queries:
1. Is the entire amount taxable?
2. If yes, how much of the amount would be taxable?
3. Will the total 5 years be considered, or just the last company's 4 years? And would it be taxable or non-taxable?
Thanks in advance!
Regards,
Vinay
From India, Pune
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Dear Vinay, Please see this attached file(got from etaxindia). it may help you to calculate the actual amount of taxables........ regards. Jawed Alam
From India, Dhanbad
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78From India, Dhanbad
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Thanks, Jawed, for the prompt reply. I appreciate your help. I have gone through the attached document, but it could not solve many of my queries.
Taxability of PF Withdrawal
My basic query is whether it would be taxable or not, as the duration is more than 5 years if we consider both companies' tenures. In this document, they have just said if the amount is transferred for below 5 years' tenure to a new company, that would be exempted. However, it does not clearly mention the withdrawal if the employer is changed and the duration with any single employer is less than 5 years. In that case, would it be taxable or not?
Thanks in advance. Awaiting your response!
Regards,
Vinay
From India, Pune
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Taxability of PF Withdrawal
My basic query is whether it would be taxable or not, as the duration is more than 5 years if we consider both companies' tenures. In this document, they have just said if the amount is transferred for below 5 years' tenure to a new company, that would be exempted. However, it does not clearly mention the withdrawal if the employer is changed and the duration with any single employer is less than 5 years. In that case, would it be taxable or not?
Thanks in advance. Awaiting your response!
Regards,
Vinay
From India, Pune
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Dear Shri Tanwani Ji,
Your own subscription to PF is not taxable. The company contribution for less than 5 years is taxable income. If the total service is more than 5 years in two or more companies, the total company contribution is not, repeat not taxable. If a firm is shut down and that is the reason for a change of job or withdrawal, the company contribution is not taxable even if the length of service is less than 5 years. In your case, you have worked for more than 5 years, so the employer's contribution to your PF account withdrawn by you after 5 years is not taxable.
Thanks and regards,
From India, Pune
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Your own subscription to PF is not taxable. The company contribution for less than 5 years is taxable income. If the total service is more than 5 years in two or more companies, the total company contribution is not, repeat not taxable. If a firm is shut down and that is the reason for a change of job or withdrawal, the company contribution is not taxable even if the length of service is less than 5 years. In your case, you have worked for more than 5 years, so the employer's contribution to your PF account withdrawn by you after 5 years is not taxable.
Thanks and regards,
From India, Pune
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