Dear Friends,
Can any one resolove my doubts Regarding tax implicaton on RPF withdrawl.
1.I have withdrawn RPF( with drawn with in the 5 years and TDS @ 10% deducted on the same by the provident fund org) under which head it is taxable (salaries or other sources) ?? if the same is taxable under the head income from salaries can i claim standard deduction of Rs.40000/-.
In case the period of continuous service is less than five years, the sum total of the employer’s contribution to EPF and interest earned on it is taxable under the head “salary" in the subscriber’s income tax return.
The subscriber’s own contribution portion of the withdrawal is not taxable. But if the subscriber had claimed deduction under Section 80C on his contribution in earlier years, it becomes taxable under salary. (yes, SD can be claimed)
The interest earned on the subscriber’s own contribution portion is taxed under ‘income from other sources’.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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