If you submit 15G, then TDS will not be deducted. But, you will have to pay tax while filing your IT return, since you are withdrawing before 5 yrs.
This tax on PF can be broken into three parts:
1) Total of employer’s contribution plus interest which was not taxed earlier will be taxed under the head ‘profits in lieu of salary’.
2) You will be taxed on the amount of tax benefit claimed for your contribution of EPF.
3) Interest received on your own contribution to EPF will be taxed as ‘Income from other sources’.
From India, Mumbai
This tax on PF can be broken into three parts:
1) Total of employer’s contribution plus interest which was not taxed earlier will be taxed under the head ‘profits in lieu of salary’.
2) You will be taxed on the amount of tax benefit claimed for your contribution of EPF.
3) Interest received on your own contribution to EPF will be taxed as ‘Income from other sources’.
From India, Mumbai
The terms used are " 5 years of continuous service " (including PF transferred from previous companies. Hence I am of the view that previous companies must be immediate previous companies, otherwise it does not fulfill the condition of "continuous service". So, a gap in transfer either due to non-transfer or withdrawal will break the rule of continuous service.
Badly confusing !!
From India, Mumbai
Badly confusing !!
From India, Mumbai
517Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
TAXABILITY ON EPF WITHDRAWAL.docx