As per my understanding of Income Tax Rules, EPF withdrawals after 5 years of continued service with an employer are exempt from Income Tax. So in what section of the Income Tax form do you report the amount received.
I have applied for withdrawing the PF ten days back. My PF in first year was 3400, Second year was 3500 and third year it was 3675 INR. I had worked in the company for Three years exactly. How much would be the Amount that I should be expecting on withdrawal. How much time would it take.
Can we withdraw the entire amount from PPF after 15 years?
I have a PPF account opened in the name of my son. I will now start withdrawing amounts from this gradually, if not forced to withdraw in one go. I will be concerned with the taxation angle while withdrawing. My son is still a student, and for 2 more years he won’t start earning. I intend to withdraw now to fund his studies. I understand tax will be levied when PPF is withdrawn. For the case described below tell me how Tax will be levied.
Total funds in account. Rs 8 lakhs. Principal Rs 5.6 lakhs (nearly 70% of the total). Interest is Rs 2.4 lakhs.
1 If we were forced to withdraw entire amount, do we pay tax on 5.6 lakhs or 8 lakhs?
2 If I withdraw in instalments and draw 1.6 lakhs first, will the entire amount be taxed? or will 70% of this be considered principal and taxed?
3 What is the best way to withdraw over 3 instalments?
Thank you in anticipation.
Thank you for the response. I have read some contradicting reports. Hence raised the question. Pls see the following.
Is this dated?
i want to withdraw money from my ppf bank a/c to pay for new house i am purchasing. bank is allowing me to withdraw 50% of bal available as on 31/3/2008 in my ppf a/c.
whether this withdrawal is taxable by any mean in I.Tax?