TDS being deducted from PF interst credit

TDS 2366 views 3 replies

Recently I had opted VRS after 33 years service from a corporate body under Govt. of India. Our PF trust allow the employees to retain EPF accumulation with the trust for max 3 years and continue to pay interst @ same with other serving employees. I know more than Govt. approved interst is taxable. But here the case is not that.

But the trust deduct TDS on the intert credited in the accumulated EPF corpus.

Which section of I.Tax act/rule is applicable in such situation?

Few of our friends use to get that tax refunded through return depending upon their respective jurictiontion. But not all are so previlaged.

D.Chattopadhyay

dipankar_chattopadhyay @ yahoo.com

Replies (3)

Sir, The trust had converted your EPF accumulation into loan account and start deducted TDS  u/s 194A TDS on Interest.

 

This is my personal opinion.

 

Views from other forum members are requested.

Originally posted by : Akhil Gupta

Sir, The trust had converted your EPF accumulation into loan account and start deducted TDS  u/s 194A TDS on Interest.

 

This is my personal opinion.

 

Views from other forum members are requested.

 

 
TDS u/s sec 194A on Interest earned by in-active PF Trust members
Is anyone aware of TDS u/s 194A on interest earned by Provident Fund members in a Trust after they have left the organisation?
 
May I quote the following conversation in the matter.
 
Re: TDS u/s sec 194A on Interest earned by in-active PF Trust members
No as per Delhi High court judgement, a trust is like "individual" and hence not liable to deduct tax at source for amount credited to account of ex-employees

Commissioner of Income-tax v. Food Corporation of India, Contributory Provident Fund Trust

[2009] 318 ITR 0318


D K Tejwani

suggest me i will take classes fom grish ahuja from edu he is best or not


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register