I joined a new job at age 61 for four years and retired permanently, during COVID period, after 4 years service. I was getting EPF benefit.
Will it be taxable when withdrawn after 5+ years from initial contribution month, though service was for below 5 years.
From India, Rajsamand
Will it be taxable when withdrawn after 5+ years from initial contribution month, though service was for below 5 years.
From India, Rajsamand
Yes, if the amount withdrawn is more than Rs 50000 and the period of service is less than five years the PF amount will become taxable. But there is one provision that if the discontinuation of service is due to employee’s ill health or if the business of the employer is discontinued or if the amount is withdrawn due to reasons beyond the control of the employee then the amount will not be treated as taxable income. Here, you can take the third one, ie, reason beyond the control of the employee and the reason being Covid-19 and obviously, it is a reason for discontinuation of service.
You can also submit form 15G if you don't have income (including the PF accumulation) which will cross the taxable limit.
From India, Kannur
4246You can also submit form 15G if you don't have income (including the PF accumulation) which will cross the taxable limit.
From India, Kannur
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