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POSTED BY ON January 18, 2013 8:30 pm COMMENTS (7)
I wold like to know the precise Lock in period for recognised PF to be nontaxable in hand . whether its 5 yrs or 4 yrs and 240 days??
As per gratuity act 1972 ,5 yrs continous service stands for a precise 4 yrs and 240 days of service. whether same definition of continuos service is applicable for EPF also.
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For EPS withdrawal does the PF office treat 183 days of service as 1 year? Eg. if a person tries to withdraw his EPS contribution after 2 yrs and 7 months of service, then he is given the EPS withdrawal for 3 yrs?
Dear FFC, please check http://www.incometaxindia.gov.in
Thanks
ASHAL
Dear FFC, I checked the following link & did not find any mentioing of 4Y & 240days thing.
http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=5cc98992-765c-46b0-a433-271b2e2b6901&rdb=sec&yr=a56ea192-3ca8-433a-a515-ed68a062eac7&sec=80c&sch=&title=Taxmann – Direct Tax Laws
Thanks
Ashal
Ashal, Unable to open the link. Does it mention 5 years then?
Dear FFC, in the link shared by you, there is no clarity from where the Author is quoting this 4Y & 240 days thing. Gratuity & PF are 2 seperate things & can not be compared on taxation count.
Thanks
Ashal
“Section 80C of Income tax law states that the withdrawal of EPF is exempt from tax upto a limit of Rs 100,000, if the withdrawal happens after completion of 5 years (precisely 4 years + 240 Days)”
This is also confirmed by CAclubindia members
Nice question!
According to this
http://www.fingyan.com/how-to-withdraw-provident-fund-in-india/
4 y and 240 d for recognized PF!
You could write to the author for a copy of the official extract