Any amount deducted from EPF after resigning from the post after working for 2 years?

Question

Dear sir

i have workd with Infosys for 2 years and my EPF was abt 44k and applied for final withdrawl as i had resigned and am studying . Now if any amount will be deducted from this final payment(My contribution + Employer contribution). Please let me know the rules concerning this issue

Answer 1

You need to be in the PF account continuously for 5 years if your PF is to be non-taxable. In your case, if you have not worked prior to Infy or if there was a break in your career w.r.t. the EPFO account(s), then the PF withdrawal is taxable.

The tax is calculated thus:

Your contribution to PF - 0% tax

Interest earned on PF accumulated is charged under the head "'Income from Other Sources" or tax computation.

Employer's contribution is charged under the head "Salaries".

Answer 2

No amount will be get deducted

Mr Tulsi Gupta