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Withdrawl of epf

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Harshit Doshi (Querist)

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)

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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