Accretions in PF accounts during breaks in jobs are taxable1 min read . Updated: 05 Jul 2021, 05:49 AM IST
As per section 10(12), read with rule 8 of part A of fourth schedule of the Income Tax Act, 1961, the accumulated PF balance due and payable to the employee is exempt from tax if he has rendered continuous service for five years or more
I have worked with two organizations—from December 2017 to June 2018 in the first, and from May 2019 to June 2020 in the second—but have not withdrawn the employees’ provident fund (EPF) amount from either of them. My next job will commence in April 2022. Should I transfer the amount from my first organization’s account to the second and wait, as I do not want to pay taxes? Or is there some other way to proceed?
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