Chartered Accountant, Sirs
Sir
That I a state government servant on retirement GPF part final withdrawal 28,80,000 credited to SBI. In turn, the amount auto sweeps to MOD, i.e., FD account .
Now, SBI shows it in AIS under SFT 005
How to treat this GPF withdrawal amount in itr1?
Please
D Soundar Rajan
Plot No 23A 2nd Street
Krishna Nagar SB Homes Road Guduvanchery East Chengalpattu District
Tamilnadu Pin 603202
Contact Phones 9445771409/8610684712
Hello Mr. Rajan,
Regarding your GPF (General Provident Fund) withdrawal of ₹28,80,000 credited to SBI and reflected under SFT 005 in AIS, here’s how you should treat it in ITR-1:
Is the GPF withdrawal taxable?
No, the withdrawal of GPF by a government employee at retirement is fully exempt from tax under Section 10(2) of the Income Tax Act.
This exemption applies to the entire amount withdrawn, including any interest accrued.
Reporting in ITR-1:
Since the amount is exempt, you do not need to declare the GPF withdrawal amount as income in the “Income from Salary” or any other head.
The amount will appear in your AIS (Annual Information Statement) under SFT 005 (Deposit or Withdrawal in Bank accounts) because it is a cash transaction, but that is for information only.
You can ignore this entry in your taxable income computation.
Bank auto-sweep to FD:
The automatic sweep to Fixed Deposit (FD) account is simply a mode of holding the money and does not impact taxability.
Any interest earned on the FD after the deposit is taxable under “Income from Other Sources” in the year it accrues or is credited.
Filing ITR-1:
Since you are a retired government servant and presumably have income from pension and other exempt income, you can file ITR-1.
Don’t include the GPF withdrawal as income.
Include taxable pension, interest income, or other taxable sources if any.
| Descripttion | Treatment in ITR-1 |
|---|---|
| GPF Withdrawal Amount | Fully exempt, do not declare |
| Interest on FD (post withdrawal) | Taxable under “Income from Other Sources” |
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