I have a question regarding tax filing. I withdrew my PF amount this year. I was with my previous organization for more than 5 years. My question: Is this amount taxable?

Ans: Since, you have worked for more than 5 years in the organisation, there is no tax on PF interest upto the period you were employed.Interest on PF is taxable after this period.

Ans: Any payment from a provident fund is exempt u/s 10(11). However, as Interest is earned after retirement and in the absence of specific provision, it can be subject to litigation.

Ans: As you have completed 5 years of job, amount will not be taxable on withdrawal

Ans: Hello Niraj,

Certainly! If you haven't withdrawn your Provident Fund (PF) amount from your previous company where the PF was deposited in a trust, you should be aware of the following:

1. Interest Accrual: As per the information available, if no contribution is received into a PF account for 3 consecutive years, the account will not earn any interest after those 3 years. This means that if your PF account has been inactive (no contributions) for the last 5 years, it would have earned interest only for the first 3 years out of those 5 years.

2. Tax Implications: If an employee has rendered continuous service for a period of five years or more, the accumulated EPF balance is exempt from tax. However, if you decide to withdraw the amount before completing 5 years of continuous service, there might be tax implications.

3. Recommendation: It's always a good idea to periodically check your PF account to ensure that it's earning interest and to be aware of any changes in rules or regulations. If you're unsure about the status of your PF account, you might want to contact the trust where your PF is deposited or consult with a financial advisor.

I hope this helps!