I worked in a company for 12 years, but three years ago it was taken over by a new one. My provident fund (PF) account of the former company ceased to exist and we were made to withdraw the money. Now we have a new PF account. I’m taking a break from work now and want to withdraw the money. Will I be taxed?
—Shankar Raj
PF withdrawal is taxable if the same is withdrawn without rendering continuous services for five years or more. However, if the accumulated PF balance maintained with the old employer is transferred to the PF account of the current employer, then the period of previous employment is also included as part of continuous service and accordingly period of five years is calculated.
