Tax on EPF Withdrawal

Many People think EPF Withdrawal is not taxable but it’s not true in certain cases.

EPF amount withdrawn can be taxed only in the below condition

• If the Total Accumulated Service is less than 5 years
  • Suppose if the member has worked in an Organization “A” for 2 years and another Organization “B” for 1 year and if the member is trying to Withdraw the amount then it’s taxable
  • If the member’s PF contribution service is less than 5 years in a single organization

 

Tax Exemption cases 

• If the Member’s service is terminated due to ill health
• If the Company shuts down
• Some exceptional circumstances beyond the control of the Employee

 

If there is anyone of the above reasons is valid then the PF amount is not taxable