PF Withdrawal Reporting in ITR

This query is : Resolved

swasti gurgaon (Querist)
Follow

10 May 2025 Under which head shall I report withdrawal of Provident fund in ITR 3 in order to claim TDS?

(I can't show it as exempt income as TDS has been deducted. Also, showing it under schedule Other sources will be be flagged defect by IT department.)

Thanks in advance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

11 May 2025 Report the taxable portion of your EPF withdrawal under the head "Income from Salary" in ITR 3.

The employer’s contribution plus interest is taxable as salary income, while interest on your own contribution is taxable under "Income from Other Sources".

If you previously claimed deductions under Section 80C for your own contributions, that portion will also become taxable under "Salary" on withdrawal before 5 years.

swasti gurgaon

swasti gurgaon (Querist)
Follow

11 May 2025 Sir, this withdrawal was made after 5 years of service so do I need to report it in 17 (1) or 17 (2) or 17 (3) or some other particular?

Also, the entire PF amount was settled all at once and TDS was deducted on it. Can I mention this PF withdrawal under "Salary" head instead of showing it under sperate heads.

Thanks Sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

11 May 2025 Withdrawals made after five continuous years of service are completely tax-free.
This includes both your contributions and the employer’s contributions, along with the accrued interest. So, no TDS deducted over it.
Get TDS certificate for more details...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

28 September 2025 Good luck.....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now