POSTED BY July 12, 2012 11:07 am COMMENTS (8)ON
I have served in company A for 7 years and accrued an amount of x in PF. I joined company B and I transferred the PF to the account under company B. I completed 1 year at company B and now plan to join company C. By now the PF amount is x + y . (y is the PF contribution during the past 1 year with company B).
I wish to have more control over the PF amount in terms of liquidity and would like to withdraw the amount instead of transferring to the new PF account in company C. I plan instead to put the amount withdrawn in fixed deposits.
Since my total continuous employment is 8 years, can I withdraw the entire amount ie x + y without any tax liability ? Or is it that I can withdraw only the PF amount accrued during the first 5 years of tenure ie (x *5) /7 as tax free ? I have been claiming tax benefit in all years against the PF contribution under section 80c.