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Epf non taxable limit after maturity

kiran (retired) (25 Points)

27 March 2015

MY FRIEND HAS RECEIVED AFTER RETIREMENT RS 10 LACS AS MATURITY AMOUNT OF HIS EPF.

PL LET ME KNOW IF IT IS TAXABLE.NONTAXABLE LIMIT 5 LACS?

THANKS

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2 Replies

Vineet Goyal (Assistant Manager - Finance & Accounts) (702 Points)
Replied 27 March 2015

Please go below to know more about taxabilility on EPF

https://financeandtaxhub.blogspot.in/search/label/Employees%20Provident%20Fund%20%28EPF%29

Deepak Gupta (CA Student) (15922 Points)
Replied 27 March 2015

Employees Provident Fund:
.
Tax treatment in respect of contributions made to and payment from various provident funds are summarized in the table given below:
.

Particulars	Statutory provident fund	Recognized provident fund	Unrecognized provident fund	Public provident fund
Employers contribution to provident fund	Fully Exempt	Exempt only to the extent of 12% of salary*	Fully Exempt	-
Deduction under section 80C on employees contribution	Available	Available	Not Available	Available
Interest credited to provident fund	Fully Exempt	Exempt only to the extent rate of interest does not exceed 9.5%	Fully Exempt	Fully Exempt
Payment received at the time of retirement or termination of service	Fully Exempt	Fully Exempt (Subject to certain conditions and circumstances)	Fully Taxable (except employee’s contribution)	Fully Exempt

.
*Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits) + turnover based commission
.
Payment from recognized provident fund shall be exempt in the hands of employees in following circumstances:
.
a) If employee has rendered continue service with his employer (including previous employer, when PF account is transferred to current employer) for a period of 5 years or more
.
b) If employee has been terminated because of certain reasons which are beyond his control (ill health, discontinuation of business of employer, etc.)
.
- Information Courtesy: Income Tax Department Website (Charts & Tables)