1. #1
    Unregistered

    Are PF amount be taxable at the time of relieving?

    Provident Fund amount is given at the time of relieving of employee.So, if an employee resigns after 20-30 years of employment, he is ought to get a good sum of money at a time. Please specify me that will this amount be taxable or not and if yes than in what conditions?

  2. #2
    ealp Array
    Join Date
    Oct 2012
    Posts
    250

    Re: Are PF amount be taxable at the time of relieving?

    Dear friend Provident Fund is given at the time of relieving of employee or if an employee resigns or an employeeterminated then definitely he/she will get a large amount and that is totally free from Income Tax.But whenever large fund begin to earn interest that income to be added to your annual income.In case of PF it is free but in case of Gratuity there is limit after a certain limit retired employees to pay Income Tax.

    Thank You,


  3. #3
    Ashok Array
    Join Date
    Jul 2012
    Posts
    2,293

    Re: Are PF amount be taxable at the time of relieving?

    Quote Originally Posted by Unregistered View Post
    Provident Fund amount is given at the time of relieving of employee.So, if an employee resigns after 20-30 years of employment, he is ought to get a good sum of money at a time. Please specify me that will this amount be taxable or not and if yes than in what conditions?
    Dear Aspirant,

    It is always good to be clear in such matter for mental piece.The PF account is maintained under the employee provident act 1952 of the central govt.

    Since the employees are submitting the IT return as per their gross income for a particular financial year & the PF amount is deposited from the monthly income of the employee which is shown & taken into account & rebate is allowed under section 80C of the Income Tax Act 1961,the amount received from PF account either at the time of retirement or resignation or termination is not taxable.

    So need not worry & be happy.

    Thanks & good luck.

  4. #4
    chanchal Array
    Join Date
    May 2013
    Posts
    355

    Re: Are PF amount be taxable at the time of relieving?

    Quote Originally Posted by Unregistered View Post
    Provident Fund amount is given at the time of relieving of employee.So, if an employee resigns after 20-30 years of employment, he is ought to get a good sum of money at a time. Please specify me that will this amount be taxable or not and if yes than in what conditions?
    Hello Aspirant,

    It is always good to be clear in each & every matter related to service regarding deduction of tax,promotion etc.The PF account is being maintained as per the Provident fund Act 1952

    As per the provision in the act,the amount received from the PF account either at the time of resignation or termination or retirement is not included as an income for income tax purposes.Since the said amount has been deposited in the account from the monthly amount of salary which has been shown in yearly Income tax return & rebate has been allowed as per the section 80C of Income tax Act 1961,the said amount is not countable for tax calculation.


    Good luck.

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