PF withdrawal before 5 yrs..BT 1st time filling return...whether it wud be added in his salary? if yes..how can we segregate his contri,employers contri
Yes, EPF withdrawals taxable if before 5 year. 1) employer’s contribution to EPF and interest earned on it is taxable under the head “salary" in the subscriber’s income tax return. 2) own contribution portion of the withdrawal is not taxable. But if the you had claimed deduction under Section 80C on his contribution in earlier years, it becomes taxable under salary. 3) The interest earned on own contribution portion is taxed under ‘income from other sources’.
CAclubindia
