I have been running a business for 7 years now. I had contributed to an EPF account for the first 3 years of my career while I was in a salaried job. I would like to liquidate the account now. Will I be taxed?
peakalpha Changed status to publish December 7, 2021
Yes, you will be taxed. Employer’s & employee’s contribution to the EPF account will be taxed as ‘Income from salary’ upon withdrawal in cases where 5 years of continuous service has not been rendered. Interest earned on these contributions will be taxed as ‘Income from other sources’.
peakalpha Answered question December 7, 2021