EPF Withdrawal taxation

Hi - Can someone clarify if I can get relief under section 89 if I file a form 10(e) for EPF withdrawal in a case where the continous service is less than 5 years? If yes, which years can this be applied to, ie both the employment and post-employment period?

Appreciate your help, 

regards 

murali 

Replies (2)
Quick Summary
EPF withdrawals before 5 years of continuous service may qualify for Section 89(1) relief through Form 10E. Relief generally applies by allocating taxable contributions to employment years, while post-employment interest is typically taxed in the year of withdrawal as per applicable rules.

  • Can you claim Section 89(1) relief via Form 10E? Yes, it is legally permissible to avoid a higher tax slab impact.

  • Which years apply? The income must be spread back to the active employment years during which the corpus was built. Any interest earned during the post-employment period before final withdrawal is allocated strictly to the specific financial years in which that interest accrued.

Thanks Aashok. I have one question though on the second part, "interest paid in the non-employment years to be accrued in the same FY", is this correct? I read that, although reported as salary income, the interest is going to be recognised only on the FY of the withdrawal and can't be accrued. Appreciate your thoughts on this. I haven't looked at it, but I am told form 10(e) wouldn't allow you show the interest unless there is a contribution in that FY. 
thanks 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details