Hi...
Can someone help me with this PF thing?
I was employed with a leading BPO in Pune. Was there for almost 3 years. Now i am not in India and not working.
I received the employers contribution of my PF. When i received my contribution it was 50% of the employers contribution.
My belief was that employers contribute 50% or equivalent. In this case i have less then employers contribution. Can sum1 explain this theory.
Also let me know if tax is deducted from the PF Fund.
Thanks
Shweta
From United Arab Emirates, Dubai
1Can someone help me with this PF thing?
I was employed with a leading BPO in Pune. Was there for almost 3 years. Now i am not in India and not working.
I received the employers contribution of my PF. When i received my contribution it was 50% of the employers contribution.
My belief was that employers contribute 50% or equivalent. In this case i have less then employers contribution. Can sum1 explain this theory.
Also let me know if tax is deducted from the PF Fund.
Thanks
Shweta
From United Arab Emirates, Dubai
Dear Shweta
As far as PF is concerned it is done with following brekup
Employee contribution 12%
Employer contribution 12%
Admin Charges 1.61 %
now Employer contribution = 12% is further break into 8.33% = pension fund and 3.67 % into PF Fund now as you have completed more than 6 months you have an option of availaing the fund given in pension fund or to have an certificate of the same,via exercising an option in 10 c and 19.
Thanks and regards
Jayendra Chaturvedi
From India, Gurgaon
As far as PF is concerned it is done with following brekup
Employee contribution 12%
Employer contribution 12%
Admin Charges 1.61 %
now Employer contribution = 12% is further break into 8.33% = pension fund and 3.67 % into PF Fund now as you have completed more than 6 months you have an option of availaing the fund given in pension fund or to have an certificate of the same,via exercising an option in 10 c and 19.
Thanks and regards
Jayendra Chaturvedi
From India, Gurgaon
Thanks Jayendra...
However i have a few doubts..
Employers contribution in my company was invested in a trust and i received 40000 approx from it.
However my contribution i received only 20000.
Does this mean that PF is taxable.... and even if it is a yes then what is the rate applicable.
LAstly i was not employed till Sept 07 after that, and currently employed in UAE (TAX FREE) so is there any way i can get a tax refund. I also have a housing loan going on
Regards
Shweta
From United Arab Emirates, Dubai
However i have a few doubts..
Employers contribution in my company was invested in a trust and i received 40000 approx from it.
However my contribution i received only 20000.
Does this mean that PF is taxable.... and even if it is a yes then what is the rate applicable.
LAstly i was not employed till Sept 07 after that, and currently employed in UAE (TAX FREE) so is there any way i can get a tax refund. I also have a housing loan going on
Regards
Shweta
From United Arab Emirates, Dubai
Dear Shweta,
1. PF FUND IS FULLY TAXABLE,SO AMOUNT WITHDRAWN BY YOU IS TAXABLE.
SO ANY AMOUNT GIVEN BY YOU ,YOU CAN CLAIM IT BY USING FORM 16
AT MARCH APRIL 2008.
Thansk and regards
Jayendra Chaturvedi
From India, Gurgaon
1. PF FUND IS FULLY TAXABLE,SO AMOUNT WITHDRAWN BY YOU IS TAXABLE.
SO ANY AMOUNT GIVEN BY YOU ,YOU CAN CLAIM IT BY USING FORM 16
AT MARCH APRIL 2008.
Thansk and regards
Jayendra Chaturvedi
From India, Gurgaon
Dear Shwetha,
I perceive your question this way.
1. You are working for a company who has PF Trust.
2. The contribution of employer and employee are going to PF trust who manage the corpus of trust.
3. You have left the job and requested for settlement. You are told that you are liable to tax on the contribution.
- You wish to know
-The amount you are entitled to get from PF Trust on your settlement.
You are entitled to get back your contribution+employer contribution+accumulated interest.
It is 12% of your monthly basic is your contribution to PF (it must be reflected in your monthly PF). Assume that your total PF contribution throught your service is Rs.20k. Employer is contributing equal amount ie., Rs.20k.
You are entitled to get back 40k+accumulated interest thereon.
-Incidence of Tax on such withdrawal.
As per Income tax Act, this withdrawal is taxable since you have not contributed for 60 months. However, transfer is not taxable. Please note employer share of the contribution will be treated as your income for the year. You are liable to pay tax on the same. However, you will get relief under the act to a marginal amount if there are some change in your tax liablity.
-Steps to recover the TDS.
After computing your tax liability for this year, you can apply for a refund while filing your income tax return. However, you should file your return well within the due date for admissibility of refund.
Hope this is clear.
Rgds
Vishwanath
From India, Bangalore
I perceive your question this way.
1. You are working for a company who has PF Trust.
2. The contribution of employer and employee are going to PF trust who manage the corpus of trust.
3. You have left the job and requested for settlement. You are told that you are liable to tax on the contribution.
- You wish to know
-The amount you are entitled to get from PF Trust on your settlement.
You are entitled to get back your contribution+employer contribution+accumulated interest.
It is 12% of your monthly basic is your contribution to PF (it must be reflected in your monthly PF). Assume that your total PF contribution throught your service is Rs.20k. Employer is contributing equal amount ie., Rs.20k.
You are entitled to get back 40k+accumulated interest thereon.
-Incidence of Tax on such withdrawal.
As per Income tax Act, this withdrawal is taxable since you have not contributed for 60 months. However, transfer is not taxable. Please note employer share of the contribution will be treated as your income for the year. You are liable to pay tax on the same. However, you will get relief under the act to a marginal amount if there are some change in your tax liablity.
-Steps to recover the TDS.
After computing your tax liability for this year, you can apply for a refund while filing your income tax return. However, you should file your return well within the due date for admissibility of refund.
Hope this is clear.
Rgds
Vishwanath
From India, Bangalore
Thanks Vishwanath,
Currently I am working in UAE. From May to Sept i was unemployed, also as u are aware that UAE is tax free. Secondly i have a housing loan in my name... so can i avail the refund of tax.
Regards
Shweta
From United Arab Emirates, Dubai
Currently I am working in UAE. From May to Sept i was unemployed, also as u are aware that UAE is tax free. Secondly i have a housing loan in my name... so can i avail the refund of tax.
Regards
Shweta
From United Arab Emirates, Dubai
Deasr Shweta,
Anybody who is a indian residence and working abroad ,no matter wheather it is tax free income if that money is brought in the country it is taxable under income accrued outside by an indian and it is taxable at a diffrent rate.
Yes you can claim the refund.
Thnaks an dregards
Jayendra Chatuirvedi
From India, Gurgaon
Anybody who is a indian residence and working abroad ,no matter wheather it is tax free income if that money is brought in the country it is taxable under income accrued outside by an indian and it is taxable at a diffrent rate.
Yes you can claim the refund.
Thnaks an dregards
Jayendra Chatuirvedi
From India, Gurgaon
Hi, Thanks for putting useful information on this forum. I have a query and need help to understand it -
I worked for a company for 6 years and contributed to EPF every month. While leaving the job, I applied for withdrawal of PF. After 3 months, I saw 2 amounts credited to my account - one was small amount and one big amount. My company's accountant told me that these are from Family Pension Fund and Provident Fund. He told me that since I have contributed more than 5 years in EPF, I need not pay any tax on EPF withdrawal, but I will have to pay tax on family pension fund amount (the small amount).
Now, my problem is that the PF department didn't send any letter or any information on the basis on which it calculated the balance in my account, whether it has deducted tax on it or not.
So, I need help to know -
1) If the family pension fund amount that I have received from EPF org, is liable for taxation?
2) Whether the EPF org would have already deducted tax on it?
Thanks in advance for your assistance.
--satish
From India, Bangalore
I worked for a company for 6 years and contributed to EPF every month. While leaving the job, I applied for withdrawal of PF. After 3 months, I saw 2 amounts credited to my account - one was small amount and one big amount. My company's accountant told me that these are from Family Pension Fund and Provident Fund. He told me that since I have contributed more than 5 years in EPF, I need not pay any tax on EPF withdrawal, but I will have to pay tax on family pension fund amount (the small amount).
Now, my problem is that the PF department didn't send any letter or any information on the basis on which it calculated the balance in my account, whether it has deducted tax on it or not.
So, I need help to know -
1) If the family pension fund amount that I have received from EPF org, is liable for taxation?
2) Whether the EPF org would have already deducted tax on it?
Thanks in advance for your assistance.
--satish
From India, Bangalore
HI,
i had started my career & worked in Company A for 3 years & after that I withdrew my PF account. That was taxed as I had not completed 5 years of service
I joined company B & worked for almost 4 yrs in Delhi. Later I joined a company C in Blore & left that in 3 months & joined company D in blore (my present company).
I applied for trasnfer of PF amt of both B &C thru D. Company C PF got transfered, howevr thr is some delay &confusion going on for transfer of B.
My query is if i withdraw the PF amount of company B (as its still not transfered), will it be taxed as i worked for < 4 yrs?
Thanks.
From India, Bangalore
i had started my career & worked in Company A for 3 years & after that I withdrew my PF account. That was taxed as I had not completed 5 years of service
I joined company B & worked for almost 4 yrs in Delhi. Later I joined a company C in Blore & left that in 3 months & joined company D in blore (my present company).
I applied for trasnfer of PF amt of both B &C thru D. Company C PF got transfered, howevr thr is some delay &confusion going on for transfer of B.
My query is if i withdraw the PF amount of company B (as its still not transfered), will it be taxed as i worked for < 4 yrs?
Thanks.
From India, Bangalore
Hi I too have the same query, how this 60 months of PF contribution is considered, single stretch...or from single company or total of 60 months without break or total 60 months with break....? Anybody can help to understand this well...if the PF is taxable [ LESS THEN 60 Months ].....then what is the meaning of PF, if it's taxable......?
Jai..
From India, Delhi
Jai..
From India, Delhi
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