PF withdrawal Income tax deduction

Hi,

You are not liable to pay any tax.

Hi,

All withdrawals made before completion of 5 years of continuous service are subject to tax. Withdrawals after completion of 5 years of continuous service in the PF are tax free.

As the rule is for contribution for less than five years... so no worry..you can withdraw (though it is after 8 years) even if tax is deducted by pf department... on withdrawal.. you have 80c 1.5 lacs limit for investment and 80ccd NPS extra 50,000 limit

And also thing to remember is that Interest on PPF is taxfree..

Hi,

- In your case PF withdrawal is taxable as the period of service rendered is less than 5 years.

- If you are senior citizen then there will be no tax upto Rs. 3 lacs and if the income would be less than Rs. 5 lacs then rebate u/s 87A is available.

- Interest on PF after retirement would be taxable as income from other sources.

- Further you can invest upto Rs. 1.50 lacs u/s 80C.

Thanks

Hi,

Tax on PF can be broken into three parts:

1. Total contribution by the employer plus interest (not taxed earlier) 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'.

Hi,

Since you did not complete 5 years of continuous service, PF withdrawals will be subject to tax. Withdrawals after completion of 5 years of continuous service in the PF are tax free.

Regards,

Nikhil.

Since you have not completed 5 years of continuous service and since you are not unemployed (I am assuming) TDS would be deducted @10% on such withdrawal and you need to disclose such amount as profit in lieu of salary and interest amount as income from other sources.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi

Yes, you shall be liable to pay tax on the amount of PF withdrawal since the period of service in your case is less than 5 years.

It doesn't matter if you have withdrawn the amount later.