premature epf withdrawal - disclosure in itr2

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bhakti soni

CA Job

54 Points Posted on 27 July 2018

I have income from salary and short term capital gain.
during the py I had withdrawn entire EPF accumulated while changing job. since my pf was less than 5 years old, EPFO have deducted 10 percent TDs. where do I disclose this EPF contribution received in my itr2. it is not reflecting in my form 16 from previous employer. also form 26 as shows name of deductor as EPFO for TDs. please advise where to show the income on ITR for EPF received. also should I show TDs form 16 or 16a ?

Replies (7)

Sarath Rajendran

Nil

2791 Points Posted on 27 July 2018

EPF withdrawal will be taxed as income and you need to include it in your ITR under the head 'Income from Salary'.

In case, individual withdraw before 5 years, the amount becomes taxable in the same financial year. Thus, the amount has to be shown on your tax return for the next assessment year.

Amount withdrawn is < Rs 50,000 before completion of 5 continuous years of service

No TDS.

However, If the individual falls under the taxable bracket, he has to offer such EPF withdrawal in his return of income

Amount withdrawn is > Rs 50,000 before completion of 5 years of continuous service

TDS @ 10% if PAN is furnished;

No TDS in case Form 15G/15H is furnished

bhakti soni

CA Job

54 Points Posted on 27 July 2018

agreed.
but what if,
1. form 16 doesn't have mention of EPF withdrawal
2. form 26as has deductor details of EPFO.
3. if I still show it as salary, do I need to mention details of previous employer? .also there will be mismatch in details as per form 16 and ITR
also TDs details will have Tan of EPFO and corresponding income will have details of previous employer

is this acceptable?

Guest

Please show PF amount under salary income.

Sarath Rajendran

Nil

2791 Points Posted on 27 July 2018

At the time of Form 16 preparation by the employer you should disclose all details

Here EPF details not mentioned in the Form 16, If you have enough details to prove your EPF withdrawel you can Show the correct details ( Include EPF)

You must remine one thing that difference between Form 16 and actual returns may lead to " Notice" from AO you have enough prove then Don't worry.