I lost my job 2 years back. I did not withdraw my EPF corpus then, thinking it’s my savings for retirement. Meanwhile, EPF office has credited interest for FY17-18 in December 2018 with transaction date as 31-March-2018. Since it was way after filing my last year\’s ITR, I could not refer it during last year\’s ITR.
My questions are;
(1) Should I show the EPF interest earned for FY17-18 in this year\’s ITR (as the amount was actually credited in December 2018)?
(2) If not, how should I handle this?
Note that typically EPFO credit interest for last financial year in the second quarter (Oct-Dec) of current financial year. So I cannot show it in the current year’s ITR (as due date is 31-July). Can I show it next year’s ITR?
Please answer these queries. Thank You.
1 – As the date of credit is in FY 2018-19, you can declare it in your current ITR for AY 2019-20.
2 – Yes, you can show it in next ITR for AY 2020-21.
You may cross-check with a CA as well.
Related article :
- EPF Interest Income & Withdrawals | Tax Implications | Is EPF Interest taxable?
- Tax Implications of EPF, PPF & NPS Withdrawals (Full / Partial) & Maturity proceeds
Thank you very much Sreekanth. Couple of more questions I asked to forgot.
(a) Is Interest earned on both Employee contribution and Employer contribution is taxable OR do I have to consider interest earned only on Employee contribution.
(b) I also understand this amount should be shown under “Income from Other Sources” section in ITR. Am I correct?
May I know your ‘Service Period’? Did you work for multiple companies and transferred your old PF balances to the latest one?
I worked for a single organization for 15+ years and currently unemployed. So my PF balance is from single company only. Thank You.