_ap_ufes{"success":true,"siteUrl":"www.investmentyogi.com/w","urls":{"Home":"http://www.investmentyogi.com","Category":"http://www.investmentyogi.com/category/alternative-investment/","Archive":"http://www.investmentyogi.com/2015/02/","Post":"http://www.investmentyogi.com/salient-aspects-of-union-budget-2015/","Page":"http://www.investmentyogi.com/nri/","Nav_menu_item":"http://www.investmentyogi.com/trending/","Wpcf7_contact_form":"http://www.investmentyogi.com/?post_type=wpcf7_contact_form&p=5591","Flare":"http://www.investmentyogi.com/flare/email/"}}_ap_ufee

Yogi Zone

Useful articles for your finance management by our team of experts

taxing on pf withdrawal

0 Flares 0 Flares ×

Question:

My query is regarding taxing on PF withdrawal. I worked with my previous employer for 4 years. That was my first job & It’s been 2 years since i left that organisation. But i didn’t withdraw or transfer my PF amount because of some reason. So i want to know whether it is taxable if i withdraw that amount now. I am confused because some people says that it is non-taxable if you are withdrawing it after 5 years from joining date. Is it correct? or if it is taxable then how much? Will it be TDS? Kindly Guide!

 

Answer:

The previous income tax benefits you had availed will be withdrawn and therefore, you would end up paying tax on the amount for which you received tax deduction in earlier years.

 

In such a case, employer’s contribution along with the interest accrual thereon is taxed as “salary”. Interest on the employee’s contribution is taxable as “income from other sources”.

 

 

       

 

0 Flares Facebook 0 Google+ 0 Twitter 0 Email -- 0 Flares ×