Taxability of PF Withdrawal for Expats

Yes, if his aggregate income exceeds basic exemption limit...

PF withdrawal is taxable when his/her employment was less than 5 years.

Filing return after leaving employment has no connection with the taxability of the EPF withdrawal.

If aggregate income in any assessment year does not exceed the basic exemption limit, ITR filing is not mandatory. Otherwise, he/she is liable for consequences for not filing return in that particular AY.

Section 80CCC

An individual taxpayer who has subscribed to an annuity plan which has been offered by an approved insurance company.

The provisions of Section 80CCC are specifically applicable to those insurance providers in India that offer annuity or pension plans. The insurer could be a public entity or a private entity as well.

The deduction under 80CCC is part of the overall deduction under section 80C. The deduction under this section is clubbed under the deduction of 80C and 80CCD, hence total deduction of Rs 1.5 lakh is available.

DEDUCTION UNDER SECTION 80CCD

Section 80 CCD(1) gives a tax deduction on NPS contributions up to 10% of their salary (basic salary + DA) made by employees. However, the total amount of deduction of 80 C and 80 CCD(1) cannot exceed Rs.1.50 lakhs in the previous year.

Section 80 CCD (1B) gives an additional deduction of Rs.50,000 on their NPS contributions.

Section 80 CCD(2) provides that employees can claim a deduction on the NPS contribution of up to 10% of salary (14% of salary for Central Government) made by the employer.