I have worked continuously in one organization for ~ 32 yrs having its own PF trust and left job at the age of ~ 54 yrs. I have withdrawn MY PF at the age of ~ 59 Yrs. My query is whether PF withdrawn (app. 35 lakhs) at the age of 59 yrs after leaving 5 yrs of job is taxable or not?

FYI,

1. My organization has not deducted any TDS when PF was withdrawn at the age of 59 yrs
2. I was not employed after leaving job at the age of ~ 54 yrs as employee anywhere.

Ans: The amount is not taxable if you were in your previous organization for more than 5 years and your account is not inactive for more than 3 years.

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: Income from other sources (like interest income) can be offered to tax on accrual or cash system. Once the method of accounting is decided, it is advisable to follow the same every year.

In case you had offered interest income on accrual system in past and you have to offer the same in current year on accrual system.

Ans: Yes, amount received from EPF before completion of 5 years of service will be taxable and TDS will be deducted @10%

Ans: The retirement age set by the Employees' Provident Fund Organization (EPFO) is 58 years for private sector employees. Therefore, you are not eligible for full PF withdrawal (contribution + pension). However, early retirement age is set at 55 years of age.

The taxability of your PF withdrawal depends on two factors:

• Your service period: If you have completed at least 5 years of continuous service (without any breaks exceeding 6 months), then the entire PF amount (including employer and employee contributions) is tax-free at the time of withdrawal.

• Your contributions made after 1 April 2004: If you have made any contributions to your PF account after 1 April 2004, then the interest earned on those contributions will be taxable.

Moreover, you need to verify the following to ensure the complete PF amount is tax-free:
• As your both accounts (company A and B) are not linked, you need to get them linked to avoid any tax implications.
• Whether there were any breaks exceeding 6 months in your service period.

Waiting until you turn 60 years old will not automatically make your PF withdrawal tax-free. The taxability still depends on your service period and contributions made after 1 April 2004, as mentioned earlier.