When Is Your Provident Fund Savings Taxable?


It is general perception that Provident fund balance in account of an employee is non taxable at the time of its withdrawal. This perception is largely true on account of the fact that most of the employee seldom face this question of taxation of their accumulated balance in their provident fund account. The general perception of accumulated balance of PF being tax exempt  it is not entirely correct because there are circumstances when even the savings in provident fund (accumulated balance ) becomes taxable , that too liable to TDS. A reader, Sri Rakesh Vishwakarma, asks ” I have resigned from my job and joined a PSU.If I withdraw all PF amount instead of transfer the amount.Is there will be any tax applicable. “

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