This discussion clarifies the taxability of Employees' Provident Fund (EPF) withdrawals. Generally, EPF withdrawals made after five years of continuous service are considered tax-free income. Even if Tax Deducted at Source (TDS) has been applied due to the amount exceeding Rs. 100,000, the withdrawal remains tax-free under the relevant sections. If TDS was deducted on a withdrawal made before five years of service, it should be shown under the 'salary' head in ITR 1.
One of my client had withdrawn their EPF after continue service 5 years 1. Form 10C-Withdrawl Benefit/Scheme Certificate 2. Form 19-Resign- ( TDS deducted as amount of is more then Rs.100000/-)
Now my query is it taxable or Tax Free Income, if it taxable where to show in ITR 1 & It is not taxable even if they deduct TDS on the same, it is taxfree Income under which section.
Sir, please revert I have file her Income tax return. Kindly help Me
21 December 2020
Dear Sir, One of my client had withdrawn their EPF after continue service 5 years 1. Form 10C-Withdrawl Benefit/Scheme Certificate 2. Form 19-Resign- ( TDS deducted as amount of is more then Rs.100000/-) Now my query is it taxable or Tax Free Income, if it taxable where to show in ITR 1 & It is not taxable even if they deduct TDS on the same, it is taxfree Income under which section. Sir, please revert I have file her Income tax return. Kindly help Me
25 December 2020
Sir, EPF withdrawal is before 5 years and TDS deducted under section 192A Now Under which head i have to show this income in ITR 1 form