Tax on PF account of previous employer

Interest earned on pf should be treated as income from other sources and no deduction u/s 80C will not be allowed.

We may assist you in return filing.

You can share Form16 with us at .com

Hi,

You should get your PF account transferred asap to the new employer.

Interest earned on active PF accounts when you are not in service or post retirement is taxable income.

However, in your case, assuming that you are working with a new employer and its only the account that has not been transferred yet, there should not be any tds as interest earned on pf in continuous service is exempt.

Hope that clarifies.

Regards,

Nikhil.

Hi,

There are two categories of interests earned on the amount accumulated under the PF account:

1. Interests on employer's contribution

2. Interests on employee's contribution

The interests earned on employe's contribution is taxable under the head income under the head salary along with the other amounts.

Whereas the portion of interests earned on employee's contribution is taxable under the head income under the head other sources.

There is no exemption available under section 80C with respect to the interest received on PF account.

The taxes deducted on the interest amount shall be claimed as tax credit against the final tax liability while filing the tax return.

Thanks

Damini

Interest on EPF is not taxable.

I don't know why your employer is giving your form 16, once you have left the organization. Your PF balance is with EPFO and not with the organization.

Please feel free to call/ revert in in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com