My employer contributed Rs 1 lakh and I also contributed Rs 1 lakh to EPF during 2016-17.
I left my job in 2017 and my income will be NIL for the financial year 2017-18 as I am not pursuing any job.
My income was Rs 15 lakh for the year 2016-17. I paid a tax of Rs 2 lakh for 2016-17 and claimed benefit of Rs 1.5 lakh deduction under 80C for a Tax Saving Fixed Deposit and not for my contribution to EPF.
I will withdraw my EPF balance this year. How will the tax be calculated on the employer contribution? What tax rate will be applicable- year of deposit (2016-17) at 30% or year of withdrawal at 0%?
Will employee portion of the contribution be taxed (I have already paid tax on it at the rate of 30%?
CAclubindia
