Is EPF Interest taxable?

Q & A ForumCategory: Provident Fund (EPF & PPF)Is EPF Interest taxable?
Vai asked 5 years ago
Hi Srikanth, 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.
3 Answers
Sreekanth Staff answered 5 years ago
Hi, 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 :    
Vai replied 5 years ago

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?

Thank You.

Sreekanth Staff answered 5 years ago
Hi, May I know your 'Service Period'? Did you work for multiple companies and transferred your old PF balances to the latest one?  
Vai replied 5 years ago

I worked for a single organization for 15+ years and currently unemployed. So my PF balance is from single company only. Thank You.

Sreekanth Staff answered 5 years ago
Hi, In that case, I believe that the 'interest' accumulated on your entire EPF balance is a taxable income during the non-contribution period. It can be declared under the head 'income from other sources of your ITR.  
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