TaxTMI 
TaxTMI 
PF withdrawal when taxable
12 Oct 2010 
3 Replies 
6432 Views Asked by
Provident fund withdrawal tax exemption depends on continuous service, ill health, business cessation, or transfer to recognised fund.
Accumulated balances from a recognised provident fund are excluded from taxable income if the employee has rendered continuous service for five years or more, or if service ended due to ill health, contraction/discontinuance of employer's business, or other causes beyond the employee's control; transfers of accumulated balances to a recognised provident fund maintained by a new employer preserve the exclusion and prior service under former employers is included in computing continuous service. (AI Summary)
Accumulated balances from a recognised provident fund are excluded from taxable income if the employee has rendered continuous service for five years or more, or if service ended due to ill health, contraction/discontinuance of employer's business, or other causes beyond the employee's control; transfers of accumulated balances to a recognised provident fund maintained by a new employer preserve the exclusion and prior service under former employers is included in computing continuous service. (AI Summary)
Dear Sir, Please advise me when PF withdrawal will be taxable. What is the rule. Regards Narendra