Dear Sir,
Hope you are doing well !!
-Yes, PF will be taxable in India even if you have moved outside India as you have not completed 5 years of continuous service.
-You can even try to submit Form 15G online and ask them not to deduct TDS but generally they deduct TDS even after submitting such form and you have to claim refund of it.
"According to income tax laws, withdrawal from EPF before the completion of five continuous years of service is taxable. The five years of service can be completed either with one employer or more than one. On the other hand, if you withdraw the money after the completion of five years of service, this amount will be exempt from tax."
-It is to be noted that there are four parts to any EPF contribution— employee’s contribution, employer contribution and interest earned from both employer’s contribution and employee’s contribution.
- In case the period of continuous service is less than five years, the sum total of the employer’s contribution to EPF and interest earned on it is taxable under the head “salary" in the subscriber’s income tax return.
-The subscriber’s own contribution portion of the withdrawal is not taxable. But if the subscriber had claimed deduction under Section 80C on his contribution in earlier years, it becomes taxable under salary. It is to be noted that the EPFO subscriber’s own contribution towards EPF is eligible for deduction under Section 80C of the Income Tax Act.
-The interest earned on the subscriber’s own contribution portion is taxed under ‘income from other sources’.
- On withdrawal before five years of continuous service, TDS or tax deducted at source @10% is levied
It is advisable to take a phone consultation for detailed discussion.
