Epf non taxable limit after maturity

MY FRIEND HAS RECEIVED AFTER RETIREMENT RS 10 LACS AS MATURITY AMOUNT OF HIS EPF.

PL LET ME KNOW IF IT IS TAXABLE.NONTAXABLE LIMIT 5 LACS?

THANKS

Replies (2)

Please go below to know more about taxabilility on EPF

 

https://financeandtaxhub.blogspot.in/search/label/Employees%20Provident%20Fund%20%28EPF%29

Employees Provident Fund:
.
Tax treatment in respect of contributions made to and payment from various provident funds are summarized in the table given below:
.

Particulars

Statutory provident fund

Recognized provident fund

Unrecognized provident fund

Public provident fund

Employers contribution to provident fund

Fully Exempt

Exempt only to the extent of 12% of salary*

Fully Exempt

-

Deduction under section 80C on employees contribution

Available

Available

Not Available

Available

Interest credited to provident fund

Fully Exempt

Exempt only to the extent rate of interest does not exceed 9.5%

Fully Exempt

Fully Exempt

Payment received at the time of retirement or termination of service

Fully Exempt

Fully Exempt (Subject to certain conditions and circumstances)

Fully Taxable (except employee’s contribution)

Fully Exempt

.
*Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits) + turnover based commission
.
Payment from recognized provident fund shall be exempt in the hands of employees in following circumstances:
.
a) If employee has rendered continue service with his employer (including previous employer, when PF account is transferred to current employer) for a period of 5 years or more
.
b) If employee has been terminated because of certain reasons which are beyond his control (ill health, discontinuation of business of employer, etc.)

.
- Information Courtesy: Income Tax Department Website (Charts & Tables)

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