Employees Provident Fund Calculation Software' title='Employees Provident Fund Calculation Software' />Extensive list of articles, forum discussions, and links to external sources on a site operated by an anonymous webmaster. Employees Provident Fund Calculation Software' title='Employees Provident Fund Calculation Software' />Withdrawal from Provident Fund before Completion of 5 years taxable Withdrawal from Provident Fund PF Account before Completion of Five years taxable Withdrawal of Provident Fund may attract Income Tax. The Income Tax Department recently told EPFO Employees Provident Fund Organisation to deduct Tax TDS from the withdrawal amount, if the withdrawal happened before completing five years of subscription. Tax officials have cited a rule in the 1. Income Tax Act that taxes PF withdrawals by employees before completing five years of contributions into the EPF is taxable. In most cases, the accumulated PF balance is withdrawn at the time of retirement, and therefore, not taxable in the hands of the individual. However, in certain cases like change in employment, an individual may even withdraw the PF balance earlier. The point one needs to remember is that the amount received from such PF is not exempt from tax in all cases. Only under the circumstances listed below will the amount withdrawn from PF be eligible for such exemption from tax. If the employee has rendered continuous service with the employer for five years or more. Again, if the balance includes amount transferred from the individuals PF account maintained by previous employers, then the years of continuous service rendered to the former employers would be included for the purpose of computing the five year period. If the employee has not rendered continuous service of five years, but the service is terminated by reason of the employees ill health or discontinuance of the employers business or reasons beyond the control of the employee, the amount will be tax exempt. Another tax exempt case is when, on the cessation of the employment, the employee finds another job and the the accumulated PF balance is transferred to his individual PF account maintained by the new employer. In short, where the PF amount is withdrawn before five years of continuous service, it may be taxable in the hands of the individual as if the fund was not recognised from the start of the contributions. In such a case, payment received by the individual in respect of the employers contribution along with the interest accrual thereon is taxed as salary. Interest on the employees contribution is taxable as other income. Payment received in respect of the employees own contribution is exempt from tax to the extent not claimed as a deduction earlier. I T provisions provide that the trustees of a recognised PF or any person authorised by the regulations of the fund to make the payment of the accumulated balance to the employee should deduct tax at source while paying the amount. Further, the person liable to deduct tax has to issue the certificate of tax deducted at source Form 1. PF balance and also comply with other salary related compliance necessities. So the next time you think of withdrawing your PF, you must as an individual also assess whether the same is taxable or exempt. I worked with a private company for four and years and nine months. I have given a provident fund PF withdrawal request to my ex employer. Create Thumbnails From Pdf on this page. PPF, Public Provident Fund Account Interest Rate, Tax Benefits, Withdrawal, Age Limit We have heard a lot about PPF. Many of us have PPF accounts. Payroll Software offers Employee Management system, Leave Management, Salary software, Small Business software, Online Payroll, Customized Payroll Software India. Will the PF amount be taxable We understand that the PF maintained by your former employer was a recognized PF. As per the provisions in the Income tax Act, if the employee has rendered continuous service with his employer for five years or more, then the withdrawal of accumulated balance from such PF is not taxable at the time of termination. Withdrawal of Provident Fund may attract Income Tax. The Income Tax Department recently told EPFO Employees Provident Fund Organisation to deduct Tax TDS fr. Issuu is a digital publishing platform that makes it simple to publish magazines, catalogs, newspapers, books, and more online. Easily share your publications and get. Since the period of your services with the ex employer is four and a half years which is less than five years, you shall be liable to tax on the amount withdrawn from your PF. In addition to the normal tax payable by you, you will be required to pay all the tax concessions availed by you so far on account of contribution to such recognized PF. Further, the total employers contribution plus interest thereon, which was not taxed earlier, shall be taxable as profits in lieu of salary. However, if the accumulated balance in your PF account is transferred to your recognized PF account maintained by the new employer, no tax liability shall arise due to such transfer. Image courtesy of Mister GC at Free. Digital. Photos. netRepublished with Amendments. Descargar Manual Don Seductor Gratis.