Hi,
I withdrew my Provident Fund before the completion of 5 years. As a consequence, there has been tax deduction from my total PF amount. Could I show this tax deduction when filing tax returns for 2016-2017 tax filing?
Thanks,
Harleen
1 Answers
Dear Harleen,
Yes, you can and have to ..
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. 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”.
Kindly read:
http://www.relakhs.com/epf-withdrawal-tds-applicable-new-rules/
http://www.relakhs.com/8-ways-you-could-lose-your-income-tax-benefits/
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