Dhirajlal Rambhia (KVO Merau Kutchh) 08 May 2018
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. You will be taxed on the amount of tax benefit claimed for your contribution of EPF.
3. Interest received on your own contribution to EPF will be taxed as 'income from other sources'.
srilatha maduri 13 May 2018
now my question is .... already TDs have been deducted by the employer on the pf amount ....
and that is being depicted in 26AS....
I got a income tax notice stating that PF withdrawn should be shown under IFOS.
I have declared ....now it's showing me a tax liability of around 70000/-
my gross total income (including pf): 1500000(approx)
pf amt : 300000.
TDs 30000. @ 10%
even thought TDs have been deducted and paid by my employer....again i need to pay tax ....????
Dhirajlal Rambhia (KVO Merau Kutchh) 14 May 2018
That was your misunderstanding. TDS deducted is just intimation to department about your source of income, and is deducted at some fixed rate at 10% of the amount. While for different assessees it is taxed at his/her slab rate. You fall under 30% slab rate, so additional 20% (plus Cess) was payable by you.
Now the difference of tax liability alongwith interest for delayed payment arrives at around 70,000/- which is authentic. You are liable to pay it, without any excuse.