10 April 2016
Dear All, If an assesse had withdrawn Rs.600000 from his PF account after his retirement,what was its tax consequeces ? Query 1.Whether it is taxable or not under the head salaries . 2.Or Whether its interest component is taxable or not ? 3.If such amount is exempted then how to claim it in form ITR 1.
10 April 2016
Interest component is taxable only when the PF account is an unrecognised provident fund account. Otherwise it is not taxable. On retirement, an employee can withdraw the amount from his PF A/c and the amount withdrawn is not taxable. You may show it under the head exempt income.
10 April 2016
1.since PF withdrawn after retirement it is not taxable Under the Head salary 2. Interest on accumulated PF is not taxable. 3. Since PF is exempted income, you need not show in return. Since PF is already shown in deduction under chapter VI A in returns filed during service or in form 16.
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