Tax on epf withdrawal

1375 views 2 replies

Mukund Joshi

Engineer

32 Points Posted on 27 March 2012

Hi,

I have resigned from company 'X' after serving for 4 and half years. Alongwith the final settlements, I have requested to withdraw all my EPF balance. My employer had EPF trust. I have received the EPF amount after deduction of tax. After the end of financial year, I received two Form 16 documents. One was from the employer and the other one from Employers EPF trust.

Now, my question is, during filing of the return, can i show the income from EPF withdrawal under the head "Income from Salaries" and also the Tax deducted on the EPF withdrawal be added in Total tax deducted on salary income in that particular F.Y.

Thanks in advance.

Replies (2)

CA Ankit Totla

Practicing Chartered Accountant

469 Points Posted on 27 March 2012

Mukund,

You can take the credit of the entire tax credits in your account recd from any person as long as it is favoring your PAN in your return.

EPF withdrawal should not be taxed under salaries as PF has already been charged.. but this is what i think should be logically and i am not sure about this part.

But TDS credit is available.

CA Sripal Jain

Associate Finance

709 Points Posted on 27 March 2012

hi mukund,

u can claim tds credit and ya EPF income at the time of withdrawal is exempt under section 10 provided ur in employment for five years,since you have not rendered serivce more five years,you wil be taxable, thus u must offer your income for tax

regards

sripal jain