Hi Sir,
An employee resigns his job and his service is less than 5 years, while claiming the PF, department deducted the TDS @ 10%. However this employee salary is exceeding the ceiling limit for the Financial year.
Now where we should update the PF Withdrawal amount in ITR 1.
The tax on EPF if withdrawn before 5 years :::
Tax on PF can be broken into three parts:
1. Total contribution by the employer plus interest (not taxed earlier) will be taxed under the head 'profits in lieu of salary'.
2. There will be tax on the amount, if benefit was claimed for own contribution of EPF. (under IFOS)
3. Interest received on own contribution to EPF will be taxed as 'income from other sources'.
Sir,
Thank you so much for the Information!!!
Most Welcome, Dear ....
CAclubindia
