In the Financial Year ending 31 March 2023, for the first time the employee contribution of VPF + EPF has crossed the Rs 2.5 Lakh limit. The extra amount is miniscule Rs 3620 and no TDS was deducted by EPFO.
Experts please help on ITR2 on entries:
1) Do we need to report Rs 3620 in ITR2 Schedule OS or only the interest is required?
2) Interest on the extra Rs 3620 is not yet credited by EPFO. How to determine the EPF interest rate for FY2022-23 and the interest amount on 3620?
3) Roughly we can assume Rs 295 as interest? Then which line in Schedule OS should I enter Rs 295 for the interest from EPFO? First Proviso or Second Proviso? And Section 10(11) or Section 10(12)?
4) Next Year even if we do not cross Rs 2.5 Lakhs limit, we need to keep reporting interest earned on Rs 3620 + 295? For that amount, which section and which line in Schedule OS? Section 10(11) or Section 10(12)? Which proviso?
By paying one year extra, this may become a lifetime headache to keep track of Rs 3620 and its interest. Very badly designed law and very bad reporting.
Please help
CAclubindia
