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Friday, 2 July 2021

Withdraw money from PF after working for five consecutive years will not be taxed, find out how

 Withdraw money from PF after working for five consecutive years will not be taxed, find out how

The Provident Fund (PF) is the future deposit capital of any employee, which is deposited every month and becomes a large amount. There are many questions in people's minds about it. Find out on what basis after five years when you withdraw money from PF it will be tax free.

Withdraw money from PF after working for five consecutive years will not be taxed, find out how


An employee who has worked in many employer companies, in such a case the balance amount of the Provident Fund (PF) is transferred to the PF account of the current employer. In such a situation with the objective of evaluating the accumulated period of employment with all employers it should be seen whether the employee has worked continuously for five years or more.


I worked in a company for 8 consecutive years and contributed to the Employees Provident Fund (EPF). Then I worked for about 14 months in a small company that does not have EPF. Then, I took a break from my job for a few months and joined a big company with EPF. Have I completed 5 consecutive years of employment to be withdrawal tax free?


In the above case, as if you have served with your initial employer for 8 years, and you have already served continuously for more than 5 years. Apart from assuming that you transfer your initial employer's PF funds to the current employer, the continuous period of employment for the purpose of evaluating the continuous period for your current employer will be more than five years, regardless of your current period. Therefore, when you withdraw PF amount from your current employer (including the transfer amount from your PF account with the initial employer), it can be considered tax free.

read in gujrati

So when you withdraw PF fund money from your current employer (including money transferred from your PF account with the initial employer) it can be considered tax free.

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