New ITR forms, PF withdrawal details to be filled

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J S BHAVSAR

CONSULTING

1320 Points Posted on 07 September 2018

ITR2 and ITR3 forms have been revised once again where now PF withdrawal details in Schedule OS need to be provided. In ITR excel only three fields are given in the PF withdrawal section for taxpayer to enter,

i) AY

ii) Income Benefit -- taxpayers do not know what does this mean. Is this an amout or plain text? What should that be?

iii) Tax Benefit -- what amount to enter, how to determine that amount?

How do taxpayers determine whether Sec80C benefit was used and not used in previous years?

And, then when private employes withdraw EPF, they also get the EPS withdrawal benefit. Where to show that EPS Pension withdrawal benefit? Is that tax free? I think the Act is silent on the EPS Pension withdrawal benefit.

Some pointers in this regard from experts will help.

thanks

Replies (4)

J S BHAVSAR

CONSULTING

1320 Points Posted on 07 September 2018

The news article:

https://economictimes.indiatimes.com/wealth/tax/new-itr-forms-ask-for-year-wise-pf-contribution-details-in-case-of-taxable-withdrawal/articleshow/65715645.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23

J S BHAVSAR

CONSULTING

1320 Points Posted on 10 September 2018

Tax on PF withdrawal before 5 yrs service 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. Assessee will be taxed on the amount of tax benefit (Sec 80C) claimed for your contribution of EPF.

3. Interest received on your own contribution to EPF will be taxed as 'income from other sources'.

But assesee will know only few items from his past 3 or 4 years of service:

a) Employee Contribution

b) Employer Contribution

c) Interest on Employee Contribution

d) Interest on Employer Contribution

e) Sec 80C benefit claimed by assessee in each year with respect to their own EPF

Question: Which value will go where in the new ITR2 form?