01-24-2010, 01:38 AM
Dear,
An application should be made to the commissioner for withdrawal of provident fund on behalf of Employer.
NOC from trustees should be attached forthwith the application, which must indicate the consent of all beneficiaries being effected with the decision being taken by employer in this regard.
On the part of Employee, Treatment of Accumulated Balance on withdrawal should be dealt in the following manner, subject to the permission of commissioner against application of withdrawal;
1- That part of the total accumulated balance received by an employee which is equal to the balance at the end of the financial year prior to the date of withdrawal of recognition is to be taken as tax free.
2- Any amount received by an employee over and above the amount as in 1 above shall be taxable in the same way as in case on an unrecognized provident fund.
Let me know, has the matter been clarified to you!
Best Regards
Faisal
