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In such a situation, your other income may also be taxed. However, you also need to keep in mind which source of income comes under the tax net and you will have to pay tax on any income.
Now if we talk about Employee Provident Fund, then the salaried employee has to deposit the PF money from his salary and along with the employee's contribution, your money also gets invested in it. After maturity you can withdraw money from it, but you have the option that you can withdraw money from your PF account even before that, you should also know whether you will have to pay tax on withdrawing money from EPF or not.
When will tax be paid on withdrawal of money from EPF?
Withdraw money before 5 years
If you withdraw money before completion of five years of contribution in PF account, you will have to pay TDS on it. For this you will have to remain in service continuously for 5 years. In this, your tenure with both the new and old employers is counted together. If you transfer your EPF balance from the old employer to the new employer after five years or more, TDS is not deducted from your funds.
The job is temporary for the last five years
If you are working on contract within five years, your PF will not be deposited. In contract jobs, the employer does not have to contribute to PF. But suppose that after some time you become permanent in the job and your PF starts getting deducted. You leave this job after completion of 5 years. And now if you want to transfer your EPF balance somewhere else, it will be taxable because you have spent some part of the five years you have completed in a temporary position.
Your fund is not recognized
Any provident fund which has not received approval from the Income Tax Commissioner is considered ineligible for tax exemption. It can be approved by the Provident Fund or any other institution, but approval from the Income Tax Commissioner is required to get exemption on withdrawal after 5 years. If you are a member of URPF, your withdrawal is taxable whether you have completed five years or not.
Some important things-
If you withdraw less than Rs 50,000 before completing 5 years of continuous service.
TDS will not be deducted, but if the individual falls in the taxable bracket then he will have to show the EPF withdrawal in his return of income.
If you withdraw more than Rs 50,000 before completing 5 years of continuous service.
10% TDS will be deducted on giving PAN. That too will not be deducted if Form 15G/15H is submitted.
If you withdraw from EPF after completion of five years then
TDS will not be deducted. They will not even have to show this withdrawal in their income return.
If you transfer PF money from one account to another after changing jobs, TDS will not be deducted. This will not have to be shown in the income return, because it will not be taxed.