Withdrawl of epf

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Harshit Doshi (Querist)
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06 January 2013 Dear Sir,
I am previously employed with a bank.However,after 3 years service I leave the job & received leave salary & withdrawed EPF Balance.As I have withdarwed EPF before 5 year,the amount is taxed to me.However,I want to know that whether I can take any tax saving advantage by investing u/s. 80 C & get deduction from withdrawed EPF Money?Further,I also want to know what is TDS Rate on early withdrawal of EPf?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 January 2013 As per Rules- In case of the earlier withdrawal from a recognised PF A/c , the income of all the 3 years is recomputed by the AO assuming that the employer's contribution was made to an unrecognised PF A/c. and tax is levied accordingly.
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However, I have not practically come across with a situation like above.
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Practically, the income is taxed in a the year of withdrawal from EPF A/c.
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You can can claim 80C benefit within the limit of Rs. 1.00 Lakh.
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