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Relief u/s.89 of income tax act

Tax queries 660 views 1 replies

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salaries, can one claim relief u/s. 89 of the Income tax act, as income of my previous years pertaining to which PF is withdrawn will be recomputed and which will lead to increase in my tax liability.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

 

Replies (1)

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Now As per your case, if you withdrawn amount from RPF(recognised provident fund) before 5 year then it will be taxable as per URPF(unrecognised provident fund)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 

 


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