Query Regarding EPF continued.

POSTED BY Anindya Bhattacharya ON March 19, 2013 8:33 pm ONE COMMENT

Hi,

I raised this query regarding EPF earlier, however now when I try to update that query, due to some reason it does not allow me, So I am posting a new thread.

Here is the link to my original query

http://localhost/jagoforum2/epf-withdrawal-tax/6179/

My new query which I am not able to post

Hi Ashal and Pattu sir,

I have already applied for withdrawal, the amount has not been transferred yet.However today I came across a new blog 

Tax on EPF withdrawal

 Here I found a few question answers that probably means PF will be taxable for my case.

I have not transferred PF and my Company A has PF Account No PF1(3.8 yrs Active..total 5.8 years) and Company B has PF Account no PF2(2 yrs).

Am I missing something here?

 

FAQ

 

Q. Will my withdrawal from PF be taxable If I leave my current organisation?

 

1. Worked in Company ‘A’ from 2003-2004 (15 months)

2. Worked in Company ‘B’ from 2004-2007 (36 months)

3. Worked in Company ‘C’ from 2007-till date (52 months)

I have transfered my PF from “A” to “B” and “B” to “C”.

A:The total period exceeds 5 years and thus withdrawal  is not taxable.

 

Q. How are 5 years calculated?

 

Years in which contribution has been made to Provident Fund account are counted. It can be with one employer or more than one employer provided you got your Provident Fund transferred. If you leave your job after 2 years and you do not contribute and do not withdraw or transfer your account for 3 years then still the number of years are still counted as 2 as that’s period in which contribution to EPF was made. Such accounts in which contribution is not made are called dormant accounts. For 3 years after you stop contributing your PF account will earn interest.

Regards,

Anindya

 

 

One reply on this article “Query Regarding EPF continued.”

  1. Dear Anindya, as you opted the transfer of your EPF from A to B & from B to C, the final withdraw from C ‘ll not invite Tax as you have completed your 5Y of continuous service with different employers.

    Thanks

    Ashal

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