Since you have served more than 5 years, you can withdraw entire amount. It will be exempted.
Second option is not available in much opinion.
Tax on withdrawal of PF
I have been working in the same organization continuously for 18+ years and am now thinking of resigning (52 years old). I have no intention at least immediately of joining another concern. Regarding EPF, I am contemplating the following two scenarios: 1) Withdrawal of the entire PF balance after 2 months of resignation – Is this amount taxable? 2) Leaving the PF balances as they are but withdrawing only the annual interest amount on a yearly basis. Is this allowed by the EPFO? Will I have to pay tax on the amounts withdrawn?
Asked 5 years ago in Income Tax
1) Yes it will be exempt.
2) Not allowed.
Hello,
1. It would be exempt since you have served for more than 5 years.
2. Not allowed.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Dear Sir,
Hope you are doing well !!
1. No, it is not taxable as you have already completed 5 years.
2. Not allowed.
You can withdraw the entire amount since you have given the continuous supply of 5 years and the withdrawal would be exempt. But EPF people might ask you to submit form 15G to make it exempt income so do remember that.
Second option is not available.
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Thank you
Hi,
First option is allowable and tax free. You dont need to pay any tax on the amount received from EPFO.
I dont think second option is allowed.
Hello Sir,
1.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 EPF are tax-free.
In your tax, it is tax free as you are withdrawing the same after completion of 5 years of continuous service.
2. No, it is not allowed by the EPFO. No, you will not required to pay ant tax on amount withdrawn.
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