Hi,
I withdrew my PF after 10 years of service and recieved around 7 Lacs rupees which are currently lying in my Savings Account. I have following questions.
1. Is this amount taxable?
2. As I fall in 30% tax bracket, this amount, if taxed, tax liability will be huge. What can be done with this amount so that it will be excempted from tax?
3. I am planning to use this amount towards the down payment of my dream home. Will this give me any tax benefit?
Your reponse is highly appreciated.
Thanks,
Sylvestor