Is PF withdrawl Taxablle for a compay i had worked for 7. 6yrs- Pls help in building my understanding on this

[Harish Dahiya]

Hi ,

I have just withdrawn my PF... from one of my previous employer that i worked for 7.6 yrs ( Dec99 to June'2007)

Got the payment of around 4 lakhs . just wanted to check ..will this amount be taxable ? if yes then how much if no then what are the condition /clause where PF is exempted from taxes

Is this exemption available for PF withdraw only once in lifetime with tax ?

 

Is partial payment/ full payment  while retiring is exemptable from tax .....

 

regards

Harish

 

 

 

[CAGOPALJI AGRAWAL]

The withdrawals from PF after 5 years of service is exempt from tax. It is available again after serving for more than 5 year.

AI Summary

Provident Fund withdrawal exemption applies after a qualifying service period; exemption can recur upon re qualifying.
PF withdrawals made after completion of a five-year qualifying period of service are exempt from income tax; the exemption becomes available again if the individual subsequently serves a further qualifying period exceeding five years.