In an attempt to discourage premature withdrawals from the Employee Provident Fund (PF) balance, the Income Tax Department has asked the Employees Provident Fund Organisation (EPFO) to tax all withdrawals by workers with less than five years of PF savings.
According to the tax laws, there is a lock-in period of five years for PF savings. But despite this lock-in period, the EPFO has never levied any tax on withdrawals before this period. Such early withdrawals account for 70% of its (EPFOs) members.
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Your early PF withdrawals will be taxed
According to the tax laws, there is a lock-in period of five years for PF savings. But despite this lock-in period, the EPFO has never levied any tax on withdrawals before this period. Such early withdrawals account for 70% of its (EPFOs) members.
Read More:
Your early PF withdrawals will be taxed
