Question: Is EPF Withdrawal Taxable?

Is EPF withdrawal tax free?

Since the EPF contribution is a long-term saving, withdrawing it will deprive your retirement kitty the power of compounding.

Also, at 8.5% tax free, the EPF is a far better option than other fixed income investments.

Withdraw from it only if you have exhausted all other options..

Under which head PF withdrawal is taxable?

5) In case the period of continuous service is less than five years, the sum total of the employer’s contribution to EPF and interest earned on it is taxable under the head “salary” in the subscriber’s income tax return. 6) The subscriber’s own contribution portion of the withdrawal is not taxable.

Is EPF taxable on maturity?

The EPF maturity amount is tax-free, if you are in the continuous service of more than five years. Tax on EPF withdrawal is the main concern of the employee who leaves their jobs early and much before they actually retire. You have to return back the tax deduction in case of early withdrawal from the EPF contribution.

Is EPF withdrawal taxable after 5 years?

All withdrawals made before completion of 5 years of continuous service are subject to tax. Withdrawals after completion of 5 years of continuous service in the EPF are tax-free. In case the employee was terminated or is unemployed as a result of ill-health and so on, withdrawals will not attract tax.

Is EPF withdrawal taxable post retirement?

EPF, if withdrawn after continuous service of five years, is fully exempt at the time of withdrawal. … The lump sum withdrawn at the time of retirement is exempt from tax. The amount that is received at regular intervals in the form of annuity is taxable.

How is tax calculated on EPF withdrawal?

Rates of TDS TDS is deducted @ 10% on EPF balance if withdrawn before 5 years of service. Remember to mention your PAN at the time of withdrawal. If PAN is not provided TDS shall be deducted at highest slab rate of 30%. You can submit Form 15G/Form15H if tax on your total income including EPF withdrawal is nil.

Is PF taxable after resignation?

However, while the accumulated balance up to the date of retirement or end of employment is not taxed, any interest earned on the PF account post resigning, retirement, or end of employment is taxable. … If the account is inoperative, then it does not earn further interest.

When can EPF be withdrawn?

As per the current rules, if an individual remains unemployed for one month he/she can withdraw 75% of his/her EPF corpus. The balance 25% can be withdrawn if the member remains unemployed for more than two months.

Can we save money in EPF?

Top-Up EPF Savings For those who are looking for ways to contribute to the retirement wellbeing of your loved ones, you can do so through our Top-Up Savings facility. With this facility, the Topper may voluntarily make additional contributions to your family members (Toppee) EPF account.