Withdrawal of the accumulated balance lying in a Recognized Provident Fund (RPF) account, is exempt from tax:

CS Executive · Tax Laws and Practice · PYQS · December 2021

(A) If the employee renders continuous service with the employer for period of 5 years or more

(B) If the employee renders continuous service with the employer for period of 10 years or more

(C) If the employee renders continuous service with the employer for period of 3 years or more

(D) Withdrawal of the accumulated balance lying in an RPF account is always exempt from tax

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Income Tax Act, 1961