Hello,
My previous organisation for which i have worked more than 5 years has deducted TDS on PF interest @10%, moreover still my PF amount is with them, and i need to initiate the process to transfer to my new organisation which i have joined last year in 2016, February.
Do i need to pay more tax, as they have deducted TDS @10%, or if i am eligible for refund for the TDS which my previous organisation has deducted on PF.
Please guide me with the steps, if this is the case of refund, where i need to show the interest and how can i get the refund, while filling up the online tds.
Regards,
Ashish
4 Answers
Dear Ashish,
Two points here..
1 - No tax is applicable on EPF's interest income.
2 - As your service period is more than 5 years, TDS is not applicable on withdrawals (you have not yet withdrawn your EPF, hence no question of TDS here..).
Kindly check with your ex-employer on this. Did they issue Form -16 with this TDS details? Did you check your Form 26AS and do you find this entry in it?
Suggested articles :
https://www.relakhs.com/form-16-form-16a-form-26as-tds-itr/
https://www.relakhs.com/epf-withdrawal-tds-applicable-new-rules/
https://www.relakhs.com/tds-deducted-not-deposited-form16-itr/
Thank you Sreekanth for such a quick response. Highly appreciated.
Yes, ex-employer has issued me form 16 with the TDS details and same is reflecting under Form 26AS. I have checked it online as well.
Now my confusion is should i go for refund or, do i need to pay extra tax as they have deducted 10% TDS, if i am in higher tax bracket.
Kindly suggest and if i need to get it refund, what columns i need to fill online while filing ITR-1
Best Regards,
Ashish
Ashish
Hi,
Yes, you can file your ITR and get the REFUND.
Very tough to advice you on e-filing procedure online..
Suggest you to kindly take help of a CA and file your ITR.
I believe that you can also try requesting your ex-employer to revise the Form - 16 and correct the TDS entry, has it is a tax-exempt income.
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