After a seven year stint with a company, I quit a few months ago and withdrew the PF. I was surprised to note that there was no deduction of tax on the withdrawal. Do I need to state the withdrawal in my tax returns?
Aparna Kamath, Mangalore
According to the PF rules, if you have completed five years or more with an organisation and been part of the PF contributions, there will be no TDS on your PF withdrawal. The EPFO deducts TDS only if a member has less than five years of continuous service or the withdrawal is less than Rs 50,000. However, you need to mention withdrawal in your tax filing and the sum should reflect under the head – Income from Salary.
