I have switched to a new company. If I withdraw the provident fund of mine of the previous company, what would be the tax liability for the current year? Will it be the principal amount withdrawan or it will be the interest earned on the amount deposited in PF account.
Secondly, I have come to know that my employer has not deposited the equal amount in my PF account as he deducted it from my salary. Is it correct on the empoyer's part to deposit lesser amount in the PF account?
2007-01-14 19:07:22 · 2 answers · asked by girishjjain 2 in Business & Finance ➔ Taxes ➔ India
If you have spent more than 5 years with the previous employer, your PF is non-taxable (on principle and interest). If it is less than 5 years, the amount of tax to be paid will depend on the tax bracket you are in (i.e.10%, 20% or 30%).
If the employer has not deposited his contribution into your PF account, then it is employer's liability to deposit the amount into your account, along with interest.
2007-01-14 22:33:27 · answer #1 · answered by Srinivas G 3 · 0⤊ 0⤋
Company share of P.F. depends on terms and conditions fixed
at the time of employment.You cannot withdraw P.F. amount if you switched to another company .Amount deposited in P.F.is to be transferred in P.F.account of new company.
2007-01-14 20:20:27 · answer #2 · answered by Cdp 3 · 0⤊ 0⤋