PF Withdrawal Reporting in ITR

This query is : Resolved

Quick Summary

When reporting a Provident Fund (PF) withdrawal in your ITR 3, the taxable portion should be declared under 'Income from Salary'. This includes the employer's contribution and any interest earned. If your withdrawal occurs before five years of service, your own contributions for which you claimed 80C deductions will also be taxable under 'Salary'. Withdrawals made after five years of continuous service are generally tax-free, including all contributions and interest, meaning no TDS should have been deducted.

swasti gurgaon

swasti gurgaon (Querist)
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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)
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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)
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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)
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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)
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28 September 2025 Good luck.....

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