Kapil Bhardwaj (SC/TO) 15 September 2010

Is withdrawl of PF amount id taxable?

Dear All

I hope someone from you can help me..

I worked in a PSU and resigned after working there for one year eleven months and 19 days means I joined there on 23.06.2008 and resigned 0n 04.06.2010.

Now I want to withdraw my PF from here, as the enterprise has its own trust they are saying there will be a TDS of 30% from it.

I am wondering if I had a gross salary of Rs.14000 pm which was not a taxable income. Is really there would be a deduction?

or Can I get it back from IT deptt.

Please help me .

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1 Replies

RAM DEO KAKRA (ADVOCATE ) 17 September 2010

Dear Mr Kapil,

U R P/F AMOUNT BEING WITHDRAWAL FROM PSU RECOGNISED PROVIDENT IS NOT TAXABLE U/S 10 (XI) AS THE SAME IS FULLY EXEMPT. FURTHER UR INCOME FROM SALARY OF PSU AFTER MARCH 2010 ALSO THE TOTAL AMOUNT COMES BELOW TAXABLE MINIMUM HENCE NO TDS ATTRACTED UNDER IT ACT. FURTHER UNDOUBTEDELY U WILL GET IT REFUNDED FROM I. TAX BUT TDS DEDUCTION IS NOT APPLICABLE IN UR CASE.