Last month I withdrew Rs 2 lakh from my provident fund. This was after I worked in the last company where I was employed for nine years. Do I have to declare it in my total income?
Rekha Dixit, Pune
Tax implications in case of withdrawal from PF come into play if the withdrawal is within five years of continuous employment. The continuous employment could be in a single organisation or multiple, without a break in PF balance transferred with changing employment. As you’ve rendered continuous service of more than five years, the PF withdrawal won’t be taxed in your hands. But it has to be reported in the income tax return form under exempt income. It’s a disclosure requirement; no tax will be payable.
