Hello Sir/ Madam
One has encashed amout from Employee's Provident Fund, without completing 5 years of services, the amount so received is taxable in the year of withdrawal. While re-computing taxable income under salaries, can one claim relief u/s. 89 of the Income tax act, as income of my previous years pertaining to which PF is withdrawn will be recomputed and which will lead to increase in my tax liability.
Thank you
Hello, Mam
First of all, relief u/s 89 (1) is available only in case where any salary received which is related to ARREARS.
No relief u/s 89(1) is available in Provident fund
Now As per your case, if you withdrawn amount from RPF(recognised provident fund) before 5 year then it will be taxable as per URPF(unrecognised provident fund)
Thanks
Shikhar Sehgal
BANSAL YOGESH AND CO
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