But in case an individual who is a UK resident withdraws it, he will need to pay UK income tax on it. Source: HMRC Employment Income Manual EIM74510
Main point to remember is value of Provident fund till 6 April 2017 will not be taxable, see EIM74510
Many of us who left our lands and travelled to the UK in search of fame and fortune may be forced to withdraw funds from their Indian provident fund, it is better to know that it is taxed at the highest marginal rate in the UK.
Blessings of the Tax Gods – every day you will learn something new!
As per India UK DTAA Article 19 (2)- Any pension paid by Government of India to any individual shall be taxable only in India.
Government of India means Union, State or Municipal – see Article 3 (1) (k)
Source: UK India DTAA Agreement – Synthesized text