Tax Implications On Receiving Employees Provident Fund (EPF)

[logic_bomb]

Hello,

I am about to apply for withdrawal of my EPF (Employees Provident Fund) in India , This amount is tax free in India. Any idea if I have to declare this as my income while filing tax returns ? Anyways if I can make it tax free ?

 

[logic_bomb]

I have decided not to withdraw my EPF and earn interest on it in India, I think this is better of option than loosing 34% in tax for no reason...

 

[karmayogi]

34% Tax!!

You mean, this will be taxed in Canada? could you elaborate and help us understand how you arrived your decision so that it benefits others in similar dilemma?

 

[deerestlovelybear]

34% Tax!!

You mean, this will be taxed in Canada? could you elaborate and help us understand how you arrived your decision so that it benefits others in similar dilemma?

Depend on your annual income, it will be taxed at your marginal rate in Canada, for some it can be up to 50% tax

 

[logic_bomb]

Yep all income earned in home country any other foreign country is taxed in Canada...

 

[softwaretesting]

Yep all income earned in home country any other foreign country is taxed in Canada...

Hi,

Do you (or anyone else) have more details on this? Since it is not technically an income in that year. It was our income during the years it was deposited into account. This is similar to money kept in bank once we leave job.

Keeping money in EPF account after leaving job is not advisable as interest earned after you leave the job is taxable.

Thanks in advance.