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Pf withdrawal-taxability

CA. Karthik Reddy MNS (Practicing Chartered Accountant) (92 Points)

28 June 2016

Assessee received an amount of 4,00,00 from withdrawing his PF amont after deducting tds @ 10%.He served less than 5 years in concerned company..how the above should be shown in his return???Date of withdrawal is 31/08/2015

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4 Replies

CA Saurabh Singh (Practising Chartered ) (974 Points)
Replied 28 June 2016

Hi Karthik,

The same should be shown under head salary

CA. Karthik Reddy MNS (Practicing Chartered Accountant) (92 Points)
Replied 28 June 2016

Thank you sir for your kind response but as of my knowledge the same shall be consisting of 3 components viz.

1.Employer's contribution-taxable as "profits in lieu of salary"

2.Employees contribution will now be taxable i.e.,deduction received previously will now be taxable.

3.Interest component should be shown under the head "Income from other sources"

Am I right??Please guide me

CMA Poornima Madhava (CMA) (13097 Points)
Replied 28 June 2016

You are right. Employer's contribution and interest thereon is taxable under salary. Interest on employee's contribution is taxable under IFOS and employee's contribution is not taxable.

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