Is withdrawn EPF amount taxable? Know more details

Is withdrawn EPF amount taxable? Know more details

PF accounts are government-run and are managed by the Employees’ Provident Fund Organisation (EPFO). The scheme was established in 1952 and was initially created to offer industrial workers with a stable income after retirement.
Contribution towards the EPF account is tax exempt under Section 80C of the Income Tax Act.

As of EPF Act, an employee has to contribute 12 per cent of monthly salary to the account. The same amount is contributed by the employer. The funds accumulated in an employee’s PF account also earns interest through the course of the individual’s employment. Currently, the rate of interest on EPF account is 8.55 per cent yearly.

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An EPF subscriber ideally is supposed to withdraw their EPF contribution on retirement. However, people can also withdraw the amount under certain circumstances which include medical illness, funding marriage arrangements and purchasing a new home, among others.

EPF withdrawal taxable………Read More>>

 

Source:- techiyogiz

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