25 April 2016 India withdraws notification of proposal to restrict Provident Fund withdrawal The Government of India on April 19, withdrew a notification dated February 10, that proposed to introduce new restrictions on Provident Fund withdrawal. This reversal will ensure that an employee can withdraw the full balance (consisting of the employer's contributions, employee's contributions and any interest on both contributions) of their Provident Fund account on the termination of employment. This will be allowed subject to the condition that the employee has not been re-employed in any other covered establishment (an employer registered under the Provident Fund Scheme) for two months before making the withdrawal application. A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details. Document ID: 2016-0745 |
