Hello Sreekath,
Let me thank you for sharing your knowledge. Your blog is quite information. My question is related to EPF interest to be shown in ITR2 related..
At present i am not working and my EPF service is close to 4.5 years. Last contribution towards PF account is in Aug 2017. Since EPF interest is taxable i need to show that in ITR2.
Can you kindly clarify under which income i need to show EPF interest of both employee and employer contribution.
Regards,
Divakar
1 Answers
Hi,
Are you planning to withdraw your accumulated EPF amount?
As your service period is less than 5 years, if you withdraw EPF amount, such withdrawal amount becomes a taxable income.
In case, you join a new company which offers EPF scheme, you can transfer the funds from old EPF account to latest one. But, the interest accumulated during non-contribution phase (2017-till employment) is a taxable income.
If you are not withdrawn your EPF balance during FY 2018-19 then you can show the interest credited for that FY (Non-contribution phase) as income from other sources.
You may cross-check this with a CA as well.
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Thank you Sreekanth for your inputs. Appreciate your timely response.
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