Income from withdrawal from recognised provident fund

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If you've withdrawn funds from a recognised provident fund after completing at least five years of service, the entire amount is considered exempt income for tax purposes. This includes your own contributions, your employer's contributions, and any interest earned. When filling out your ITR-1 form, you should report the full withdrawn amount in the 'exempted income' section.

Husen A. Dela

Husen A. Dela (Querist)
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25 July 2020 Hello Experts,

I withdrawn Rs.1,12,000/- from recognised provident fund after completing five years of service.
This 1,12,000/- includes employee's share, employer's share and interest.
My query is that while filling ITR-1 which amount i have to mention in exempted income (i.e. employee's share or employer's share or interest)

CA KARAN SINGH

CA KARAN SINGH (Expert)
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26 July 2020 Dear Husen A. Dela

If you have withdrawn funds from Recognised Provident Fund after completing 5 years of service. Then the full amount is exempt. (i.e, Your Contribution, employer's contribution and interest earned over it.)

Husen A. Dela

Husen A. Dela (Querist)
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26 July 2020 Thank you Karan Sir for reply,
i want to know whether employee's contribution will be my income or not.

CA KARAN SINGH

CA KARAN SINGH (Expert)
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26 July 2020 No Husen A. Dela, neither your contribution nor employer's contribution will be part of your income. All exempt.

Husen A. Dela

Husen A. Dela (Querist)
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27 July 2020 I understand all is exempted income, but while filling ITR-1 i have to report exempted income, so in the column of exempted income i need to mention full amount or amount excluding employee's share.

CA KARAN SINGH

CA KARAN SINGH (Expert)
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27 July 2020 The full amount you need to show.

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