Hi,
I have a small query related to tax aspect of Provident Fund. I have been working in MphasiS since Feb 2006. I resigned on 18th July and got released on 25th July 2012. Spent around 6.5 years in the organization so would like to withdraw my PF now.
Since I joined as an employee of MphasiS Mumbai, my PF account was opened with EPF office in Bandra - Mumbai in Feb 2006. However, due to change in company policy, the PF account was shifted from Mumbai to Bangalore-Karnataka in Feb 2011 (after 5 years).
So my question is, since I got a new Bangalore-Karnataka PF account only an year back in Feb 2011, although I have been working in MphasiS for the past 6.5 years as mentioned above, would the amount be taxable if I withdraw it now ?
Thanks in advance.
Syed
From India, Pune
I have a small query related to tax aspect of Provident Fund. I have been working in MphasiS since Feb 2006. I resigned on 18th July and got released on 25th July 2012. Spent around 6.5 years in the organization so would like to withdraw my PF now.
Since I joined as an employee of MphasiS Mumbai, my PF account was opened with EPF office in Bandra - Mumbai in Feb 2006. However, due to change in company policy, the PF account was shifted from Mumbai to Bangalore-Karnataka in Feb 2011 (after 5 years).
So my question is, since I got a new Bangalore-Karnataka PF account only an year back in Feb 2011, although I have been working in MphasiS for the past 6.5 years as mentioned above, would the amount be taxable if I withdraw it now ?
Thanks in advance.
Syed
From India, Pune
As far as I know there is no difference in taxation Of pf whether it is from one account or multipli accounts.
From India, Mumbai
2396From India, Mumbai
I am new member , will try to help you as far my knowledge is concerned an employee who has worked less than 5 yrs ,his pf withdraw will be taxable n more than 5 yrs it will not be taxable. Pf is an income the employee salary .
Hope I helped you
Ms.Naseeb Rajput
Hr Manager
CBS Publishers & Distributors
Pvt. Ltd.
From India, Dehra Dun
Hope I helped you
Ms.Naseeb Rajput
Hr Manager
CBS Publishers & Distributors
Pvt. Ltd.
From India, Dehra Dun
Hi Mr. Saswat,
Thanks for the reply. Just to clarify, the withdrawal is not from multiple accounts, my PF amount has got transferred from one account to another just last year due to change in organizational policies. So my question is, would the PF amount be taxed if I withdraw now ?
Many Thanks,
Syed
From India, Pune
Thanks for the reply. Just to clarify, the withdrawal is not from multiple accounts, my PF amount has got transferred from one account to another just last year due to change in organizational policies. So my question is, would the PF amount be taxed if I withdraw now ?
Many Thanks,
Syed
From India, Pune
Dear Mr Naseeb,
Thanks for the reply. I would like to bring to your attention what I have written above in the query. I have spent 6.5 years in my current organization. However, due to change in organization policies, my PF amount got transferred from Mumbai to Karnataka last year in Feb with a new PF account number. So my question is, if I withdraw the amount now, would it be taxable ?
Many Thanks,
Syed
From India, Pune
Thanks for the reply. I would like to bring to your attention what I have written above in the query. I have spent 6.5 years in my current organization. However, due to change in organization policies, my PF amount got transferred from Mumbai to Karnataka last year in Feb with a new PF account number. So my question is, if I withdraw the amount now, would it be taxable ?
Many Thanks,
Syed
From India, Pune
Dear Mr. Abbas,
Thanks for the reply. As mentioned above, I would like to withdraw the amount now. My question is, since the account changed from Mumbai to Karnataka with a new PF number only last year, although I have spent 6.5 years in the organization, would the amount be taxed now if I withdraw it ?
Many Thanks,
Syed
From India, Pune
Thanks for the reply. As mentioned above, I would like to withdraw the amount now. My question is, since the account changed from Mumbai to Karnataka with a new PF number only last year, although I have spent 6.5 years in the organization, would the amount be taxed now if I withdraw it ?
Many Thanks,
Syed
From India, Pune
hi kindly contact to expert CA Mr Ravi Garg 09990303710.u can give my reference as well said shefali mam gave ur number.he will solve ur all problem. with regards shefali
From India, Delhi
From India, Delhi
Syed,
PF is a "tax-free" investment vehicle which follows Exempt-Exempt-Exempt regime, which means:
1. Your contributions are tax exempt
2. Your interest earning are tax exempt
3. your withdrawals are tax exempt.
I don't it matters how long you have an account (if my understanding is in-correct please let me know). However I had read in newspaper last year that EPFO will now start deducting TDS (I'm not sure if its being implemented). If thats the case then you would have to claim a refund on your income tax return.
Thanks
Ravi
From India, Delhi
PF is a "tax-free" investment vehicle which follows Exempt-Exempt-Exempt regime, which means:
1. Your contributions are tax exempt
2. Your interest earning are tax exempt
3. your withdrawals are tax exempt.
I don't it matters how long you have an account (if my understanding is in-correct please let me know). However I had read in newspaper last year that EPFO will now start deducting TDS (I'm not sure if its being implemented). If thats the case then you would have to claim a refund on your income tax return.
Thanks
Ravi
From India, Delhi
You have to clarify what you mean by withdrawal? Do you mean that you are going for final settlement of your account which is possible only if you resign or retire etc.? Or you are going to withdraw part of your accumulation for some authorised purposes such as building/buying house or medical treatment etc? Again you should also clarify whether your EPF account is maintained by EPFO or by the company itself as an exempted Provident Fund? Your liability or otherwise to pay tax depends on all these answers.
From India, Madras
From India, Madras
Dear Sir,
I have resigned from my organization after a service of 6.5 years. My company use to maintain my PF in EPFO. I would like to withdraw full amount as a final settlement.
I know that my withdrawal amount will not be taxable since I have completed more than 5 years in the above mentioned organization. My query was, after 5 years of service, my company changed my PF account from Mumbai - Bandra to Bangalore-Karnataka. As as result of this, I got a new karnataka PF number only last year in Feb 2011. So would my withdrawal be taxed ?
Many Thanks,
Syed
From India, Pune
I have resigned from my organization after a service of 6.5 years. My company use to maintain my PF in EPFO. I would like to withdraw full amount as a final settlement.
I know that my withdrawal amount will not be taxable since I have completed more than 5 years in the above mentioned organization. My query was, after 5 years of service, my company changed my PF account from Mumbai - Bandra to Bangalore-Karnataka. As as result of this, I got a new karnataka PF number only last year in Feb 2011. So would my withdrawal be taxed ?
Many Thanks,
Syed
From India, Pune
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