Advance Tax on EPFO Interest and Calculation
This query is : Resolved
Quick Summary
09 June 2025
Dear Experts,
I have not been working from August 2024 and I am yet to withdraw my EPF amount. Until July 2024 EPF contribution was done both by me and my employer.
My question is regarding Advance Tax for EPFO Interest for the FY 2025-2026:
- Do I have to pay advance tax (in FY2025-2026) for EPFO interest for FY2024-2025 which is yet to be credited (since it will be credited in November 2025) ?
- Since interest is calculated and paid by EPFO for the complete year FY2024-2025 and I was working until July 2024, I presume I have to pay tax only for the period from August 2024 to March 2025 ?
Any guidelines on how to calculate the tax on interest for the period August 2024 to March 2025 will help.
I have not been working from August 2024 and I am yet to withdraw my EPF amount. Until July 2024 EPF contribution was done both by me and my employer.
My question is regarding Advance Tax for EPFO Interest for the FY 2025-2026:
- Do I have to pay advance tax (in FY2025-2026) for EPFO interest for FY2024-2025 which is yet to be credited (since it will be credited in November 2025) ?
- Since interest is calculated and paid by EPFO for the complete year FY2024-2025 and I was working until July 2024, I presume I have to pay tax only for the period from August 2024 to March 2025 ?
Any guidelines on how to calculate the tax on interest for the period August 2024 to March 2025 will help.
CA R SEETHARAMAN
(Expert)
10 June 2025
Use tax calculator available in the net.
Calculate tax and reduce TDS and pay applicable percentage of advance tax for the quarter.
Calculate tax and reduce TDS and pay applicable percentage of advance tax for the quarter.
10 June 2025
I presume I have to pay tax only for the period from August 2024 to March 2025 ? since I am not employed from August 2024.
CA R SEETHARAMAN
(Expert)
10 June 2025
Yes, you are right...
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....
11 June 2025
Thanks for your reply Sir.
Also the concern is .. since the interest rate is not yet finalized for FY2024-2025 and EPF interest amount is yet to be credited, does IT department still say pay Advance Tax on some presumptive interest amount ?
Also the concern is .. since the interest rate is not yet finalized for FY2024-2025 and EPF interest amount is yet to be credited, does IT department still say pay Advance Tax on some presumptive interest amount ?
CA R SEETHARAMAN
(Expert)
11 June 2025
Yes, consider 8.5% and pay advance tax.
CA R SEETHARAMAN
(Expert)
13 June 2025
You are welcome...
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