I served four years in a company and my service ceased in May 2017. Subsequently, I claimed and received my accumulated EPF after deducting TDS by PF commission. Thereafter, I am relocated to USA for studies.
I have become NRI in the FY 2017-18, and I will submit my return for the AY: 2018-19 in ITR 2-2018.
My only concern is where shall I show my EPF withdrawal/ earning in ITR 2-2018.
Or, in which page/ schedule of ITR 2-2018, my EPF earning be mentioned in my return.
Seek your clarification.
Thanks and regards, JK Bhattacharya.
1 Answers
Hi,
EPF Withdrawal before 5 years of Service:
- If you withdraw your EPF balance before completing 5 years of continuous service, it is considered as a taxable income.
- However, members whose service has been terminated due to his ill health, contraction or discontinuance of business of employer or other cause beyond the control of the member, no income tax (TDS) shall be deducted as per Rule 8 of Fourth Schedule to the Income Tax Act, 1961.
- if you withdraw your PF balance before the expiry of five years of continuous service, then it is taxable in the year in which withdrawal has happened. (Related article : ‘EPF withdrawals & TDS rules.’)
- In addition to this, your employer’s contributions along with the accumulated interest amount will be taxed as ‘profits in lieu of salary’.
- Interest accumulated on your (employee) contributions will be taxed under the head ‘Income from other sources‘. The tax deductions claimed on your contributions will be revoked or rolled back, and shall be liable to tax. (Read : ‘7 ways you could lose your Income Tax Benefits.‘)
Hello,
I too have same case. Withdrawal before 5 years. I wanted to know where should I write members contribution in ITR.
Details are:
a) members contribution with interest- 42,227 Rs
b) employers contribution with interest- 13,137 Rs.
Please suggest
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