- This topic has 2 replies, 2 voices, and was last updated 1 year, 5 months ago by
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UContext: been unemployed over the last few months. I decided to withdraw my PF from my past employer – a PSU with its own PF trust.
I received the money, post which I wrote to the company asking for the PF account statement (in my mind it was akin to getting a salary slip) for acknowledgement.
They didn’t respond. I spent the money to meet financial requirements.
After 2 weeks, I get a call from the finance department saying they didn’t withhold TDS (around 1L) and want me to refund that money.
I don’t have the money, and I am particularly irritated that I took the effort to follow-up for a receipt which they ignored. And now they expect me to refund it immediately.
I don’t have money, will there be any legal implications? Please help.
I don’t have any issues giving the money back, but I don’t have it. Won’t be having that much for the near future too.
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SWithdrawal of PF attracts TDS and is liable to tax as though it was income earned subject to some exceptions. In your case since TDS is sought to be deducted you are not part of the exception.
The company will suffer consequences for non deduction from the IT department but ultimately you will need to pay the tax which would generally be at a rate higher than the TDS. You will also be liable to pay the company the excess money received.
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UThank you! According to information I received they have paid TDS, but didn’t deduct it from my final settlement. So from IT perspective it is ok? Either way I file my taxes with income as received. And since I have been unemployed for most part of the year, I don’t have any tax liability post deductions
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