Income Tax on PF withdrawal – 6yrs (2yrs + 4yrs) of continuous employment

POSTED BY Mihir ON September 6, 2012 6:19 pm ONE COMMENT

I have a net continuous employement of 6 yrs, with 2yrs of employment with Company A (which used private trust to place the PF) and 4 yrs of employment with Company B (which used public trust to place the PF). I got my PF of Company A transfered to the public trust of Company B about 2 years back.

Now I am leaving company B and want to withdraw the PF. If I withdraw the PF (both my & employeer’s contribution) will there be any income tax applicable? If yes, on what amount will the tax be charged and at what rate?

The company was also making contribution to the pension fund in the same PF account, can I get the transfered to the new employeer or I will lose that?

Thanks,

Mihir

 

One reply on this article “Income Tax on PF withdrawal – 6yrs (2yrs + 4yrs) of continuous employment”

  1. Dear Mihir, the PF withdraw ‘ll be tax free due to continuous employment.

    You may get your pension fund transferred to your new employer.

    Thanks

    Ashal

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