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POSTED BY ON August 19, 2013 4:19 pm COMMENTS (4)
Hello,
I have completed 3 years of employment today(my first employment) and I intend to leave the company in one month for pursuing further education.
As I had opted for Voluntary PF investment, my PF amount as of date is Rs. 5.5L
I shall not be taking up any other employment for a period of another 3 years.
I understand that my PF withdrawal will be liable for taxation if I withdraw it.
I am in no hurry to withdraw the amount, however, there is also a guideline from my company that if i do not withdraw/Transfer EPF money within 3 months, they will inititate the withdrawal procedure.
What is the best strategy that I can adopt in order to save tax? Also, I will have Income on account of Salary from March to September in this Fiscal Year(2013-14).
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Dear Viral, the plain answer is NO.
Thanks
Ashal
Dear Virqal, in my personal opinion, instead of resigning now, please take leave from your employer. if direct leaves are not allowed, apply for leave with out pay. Put your resignation in Feb 2014 or March 2014. After that apply for PF withdrawal in April 2014 so that tax liability on PF amount ‘ll be very low than the present financial year.
Thanks
Ashal
Hello,
Thank you for your reply Mr. Ashal. The problem is that my resignation procedure has already gone through. I had already tried applying for leave/Leave without pay but it wasn’t acceptable to my organization. Since I needed to be free by 15th of September, I submitted my resignation. Hence, there isn’t much that I can do on this front.
Is there any other way that I can compel my employer to delay the PF withdrawal procedure?
All your queries have an answer here http://insight.banyanfa.com/provident-fund-for-salaried-employee/