POSTED BY December 7, 2012 3:31 pm COMMENTS (4)ON
I am Amit. I worked in an organisation from Nov,2008 to Jan,2012 which comes to 39 months (3 years completed). . I resigned in Jan,2012.
I downloaded my EPF passbook today. It shows my account till 31 March,2012 updated as
Employee share – 141832
Employer share – 117494
Pension fund – 21099 (Rs 541 for 39 months).
My last drawn basic per month was Rs 26000.
If I withdraw the money now,how much should I get. Lets assume the above figures are also my updated interest till 5th Dec ,2012.
Thanks in advance.
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4 replies on this article “EPF withdrawal”
From our article Tax on EPF withdrawal
When the PF amount is withdrawn before five years of continuous service, it is be taxable in the hands of the individual as if the fund was not recognised from the start of the contributions.Provident Fund would be treated as an Unrecognised Fund from the beginning.
The employer’s contribution and interest, thereon, would be fully taxable as as profits in lieu of salary or ‘salary income’ in the hands of the individual.
The employee’s contribution would be taxable to the extent of deduction claimed under Section 80C, if any, under the Income-tax Act,1961 and
The interest earned on employee’s total contributions would be taxable as ‘income from other sources’ in the hands of the employee.
Let’s assume, an employee starts with a basic salary of Rs. 20,000. Every year, on an average, he gets a 5% increment. He contributes 12% of his basic salary towards PF which is matched equally by his company, EPF contribution is 3.67%, EPS contribution is 8.33%. EPF Interest is 8.5%.
Employer’s contribution + interest = (8,808 + Interest on 8,808 for 3 year ) + (9,248 + interest on 9,248 for 2 year) + (10,196 + interest on 10,196 for 1 year) will come under Salary income
Employee’s contribution (Assuming he has claimed entire contribution in 80C) = 28,800 + 30,240 + 31,752 will be taxable.
Interest earned on his contribution (interest on 28,800 for 3 years+interest on 30,240 for 2 years + for 1 year on 31,752 ) as ‘income from other sources’
However, if the accumulated balance in PF account is transferred to recognized PF account maintained by the new employer, no tax liability shall arise due to such transfer.
Think I read somewhere that if you have worked for 10+years (in a company or total?), EPS/pension componet of your EPF is not withdrawable & that it’s mandatory to commute that component as pension & the rest of EPF is withdrawable.
Does this still hold.
Also, is 10yrs your gross yrs since the time you enrolled in EPF (start of work life, say) or is it the years that you have been with the last employer.
You will get the full money .. Why do you think you will get less . On the amount you get, you will have to pay the tax , because you are getting it before 5 yrs of completing the job !
Please read the below link written by Manish. I hope it can help you calculating your PF.