PF

Hi,

PF withdrawal is taxable for withdrawals made before rendering 5 years of continuous service.

Can you please clarify have you received this before rendering 5 years of continuous service?

Thanks & Regards,

Payal Chhajed

Hi,

If PF withdrawn before 5 years then tax on PF can be broken into three parts and will be taxable as per your slab rate:

1. Total contribution by the employer plus interest will be taxed under the head 'profits in lieu of salary'.

2. You will be taxed on the amount of tax benefit claimed for your contribution of EPF.

3. Interest received on your own contribution to EPF will be taxed as 'income from other sources'.

PF withdrawal is taxable if service is not rendered continuously for at least 5 years. If the recognised PF is transferred to another employer, the new employer’s period of employment is also included to calculate the continuous period.

Thanks & Regards,

Payal Chhajed

Hi

If it is a case of PF withdrawal, it shall be taxable if withdrawal from PF is before completion of 5 years of continuous service. You need to declare the same in your ITR.

Employer's contribution and interest thereon shall be taxable as salary income.

Employee's contribution shall be taxable to the extent deduction was claimed in the earlier years.

Interest on employee's contribution shall be taxable under the head income from other sources.

Dear Sir,

Taxability of PF withdrawal totally depend on period of continuous service. If PF withdrawal is done before completion of 5 years of continuous service, it will be fully taxable as per the slab rate applicable to you.

Your employer’s contributions along with the accumulated interest amount will be taxed as “profits in lieu of salary” under the head Salary.However, relief under Section 89 will be available.

Interest accumulated on your (employee) contributions will be taxed under the head “Income from other sources”.

The tax deductions claimed on your contributions to EPF will be revoked or rolled back, and shall be liable to tax.

Warm Regards,

Karishma Chhajer

Dear Sir,

- Employer contribution and interest on employer contribution should be shown under the head Salary as profits in lieu of salary.

- Interest on employees contribution should be shown under the head income from other sources.

Thanks

Dear Sir,

If PF is withdrawn before 5 years it is taxable. In your case if PF is withdrawn before 5 years it becomes taxable and you need to show it under income from other sources.

Hi,

If the PF is withdrawn before 5 years of continuous service, it becomes taxable and the same needs to be disclosed on the ITR.

Employer's contribution and interest thereon will be taxable as salary income.

Employee's contribution will be taxable to the extent deduction has been claimed in the earlier years.

Interest on employee's contribution will be taxed under the head income from other sources

Hope that clarifies.

Regards,

Nikhil.

Hi,

If you withdrawn the PF after 5 years of completion of services (i.e. your total employment experience and not just with current employer), then its not taxable. You will have to show it under exempt income.

However, if you have withdrawn it before 5 years, then its taxable.

1. You will have to show employer contribution part in income from salary.

2. Your contribution and interest on PF will be taxable under other sources.

Hi

It will be taxable only when withdrawn before completing 5 yrs of continuous service.

Employer's contribution including interest is taxable under salaries and interest on employee contribution under other sources income.

Hope it help