I joined a new job at age 61 and worked for four years before retiring permanently during the COVID period. I was receiving EPF benefits.
Will it be taxable when withdrawn after 5+ years from the initial contribution month, even though the service was for less than 5 years?
From India, Rajsamand
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Will it be taxable when withdrawn after 5+ years from the initial contribution month, even though the service was for less than 5 years?
From India, Rajsamand
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Yes, if the amount withdrawn is more than Rs 50,000 and the period of service is less than five years, the PF amount will become taxable. However, there is one provision that if the discontinuation of service is due to the employee’s ill health, or if the business of the employer is discontinued, or if the amount is withdrawn due to reasons beyond the control of the employee, then the amount will not be treated as taxable income. In this case, you can consider the third reason, i.e., reasons beyond the control of the employee, with the reason being COVID-19, which is obviously a reason for the discontinuation of service.
You can also submit Form 15G if you don't have income (including the PF accumulation) that will cross the taxable limit.
From India, Kannur
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4526You can also submit Form 15G if you don't have income (including the PF accumulation) that will cross the taxable limit.
From India, Kannur
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TAXABILITY ON EPF WITHDRAWAL.docx