Please find attached the findings of case law, for the subject cited above. Thanks, Vidyadhar Bhat
From India, Pune
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74From India, Pune
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Dear All,
As per the case law, if a member has not withdrawn the PF amount upon cessation or retirement, the interest earned on the balance of the PF account will be taxable. Until the relationship between the employer and employee exists, the contributions and interest are exempt on PF for income tax purposes. Members will be required to declare this income in their return every year and pay the tax.
Thanks, Vidyadhar Bhat
From India, Pune
Acknowledge(1)Amend(0)
As per the case law, if a member has not withdrawn the PF amount upon cessation or retirement, the interest earned on the balance of the PF account will be taxable. Until the relationship between the employer and employee exists, the contributions and interest are exempt on PF for income tax purposes. Members will be required to declare this income in their return every year and pay the tax.
Thanks, Vidyadhar Bhat
From India, Pune
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Circular on PF Damage & Interest Calculations.pd f
Copy of PF Interest calculator.xls