TDS has been deducted while withdrawing my EPF amount

Q & A Forum › Category: Provident Fund (EPF & PPF) › TDS has been deducted while withdrawing my EPF amount

yash asked 10 years ago

Hi I had worked for a company for around 3 years (from Oct 2010- Oct 2013). I withdrew my PF amount (Rs 58000) from this company on Jan 2016 (after 5 years). They deducted 5800 as TDS. I read somewhere that PF is non taxable after 5 years. But I am a bit confused as somewhere it is written that it is for continuous service of 5 years. Can I claim this amount by filing ITR this year or not? Regards yash

3 Answers

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Sreekanth Staff answered 10 years ago

Dear Yash, You have contributed to EPF scheme 3 years only (2010-2013) hence TDS has been deducted from your withdrawal amount. EPF amount if withdrawn before 5 years is taxable. 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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yash answered 10 years ago

HI Sreekanth Thanks for answering.
Can you please explain the last point in the first attachment. The tax deductions claimed on your contributions will be revoked or rolled back, and shall be liable to tax. Does that mean, that I have to again look and modify the previous year filed ITR, for correction of PF withdrawal? Regards
yash

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Sreekanth Staff answered 10 years ago

Hi, There is no need to revise/rectify your Previous Assessment years' Income Tax Return but have to include the EPF withdrawal amount in your taxable income as per the guidelines when filing your income tax return for AY 2016-17 (assuming you have received the PF amount in Financial Year 2015-16).