I am little confused about where to show PF balances in "AL" schedule of ITR2 for the AY 2019-20. Should it be shown under "Shares and Debentures" or under "Insurance". The reason for showing under Insurance Group are as below:
While PF/ EPF can be treated as debt to the Government (so qualify for Shares and Debentures Group), unlike other normal debt instruments, the returns are not fixed. In PF/ EPF, you get interest in particular year based on rate announced by GoI/ EPFO. In this sense, the returns are more like Bonuse announced in term insurance LIC.
Further, purpose of PF contributions are mainly social securities, just like insurance instruments. As such, purpose wise, PF instrument is more near to Insurance, pension funds category.
Please guide.
CAclubindia
