I am a resident individual. From January 2013 to August 2017, I worked in an organization wherein I contributed Rs. 32000 every year towards my Provident account fund and I claimed Income tax benefits for the same in my returns. While leaving the organization, I withdrew all the money from my PF account after paying 10% TDS.
But now, my financial advisor tells me that since I withdrew the funds before 5 years of continuing services to the organization, all the income tax benefit I availed for the last four years shall be taxable now.
My question is, I have already paid 10% TDS while withdrawing the fund, why am I liable to pay tax on this past rebates?
Jan. 19, 2018