• Company of withdrawal tax return

Hi,

I have left my company due to ill health and withdrawn pf from the company.The TDS is calculated as the additional income for the respective three years in the company.

How can the TDS be shown in the ITR since in it for the current year and previous itr are already filed.

Also I have surrendered my single premium icici prudential insurance policy after 5 years,the sum assured is 130000 and premium is 105000.will it be included in taxable income for the TDS.
Asked 10 months ago in Income Tax from Bangalore, Karnataka

Hi,

- PF is not taxable as you left job due to ill health even though you had not completed five years of service in a company. If TDS is deducted on PF, show PF income in exempt income and claim credit of TDS deducted.

- LIC poilcy will be taxable if premium paid in any year during existence of policy exceeds 10% of sum assured. How can the premium be 80% of sum assured?. I think it is surrender value. Please check the percentage with actual capital sum assured.

Thanks

Vivek Kumar Arora
CA, Delhi
2715 Answers
124 Consultations

5.0 on 5.0

Hi,

Hope you are doing well !

1. PF is not taxable for said situation. Just show the PF income in exempt income and claim the tds refund.

2.Yes, it will be included in your taxable income.Any money received from a life insurance policy, where the premium is more than 10% of the sum assured as then it is fully taxable.

Payal Chhajed
CA, Mumbai
2439 Answers
32 Consultations

5.0 on 5.0

Hi,

1. PF should not be taxable. You can show PF income in exempt income and claim the TDS refund.

2. The insurance policy proceeds will be part of your taxable income since the premium is more than 10% of the sum assured.

Regards,

Nikhil

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

PF withdrawal is exempt from tax if it is withdrawn after I guess 5-10 years of continuous service in the company otherwise it is taxable.

How is TDS of previous years deducted In current year?

If they have deducted additional TDS claim all the TDS and show the salary of the current year.

You might have paid tax of previous years so you can claim it's TDS refund.

Regarding LIC I would say that LIC is only exempt if it has been withdrawn on maturity and it's Premium was 10% of sum assured otherwise it's taxable. Therefore in your case I feel lic would be taxable.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
1674 Answers
16 Consultations

5.0 on 5.0

Hi,

If you are company have deducted TDS in the current year, you will have to show the TDS in current year's ITR.

The money received from policy less premium shall be taxable as income from other sources.

Lakshita Bhandari
CA, Mumbai
3231 Answers
152 Consultations

5.0 on 5.0

Hi,

If your company has deducted TDS in the current year, you will have to show that TDS in the current years return

Yes, money received from your insurance policy is taxable as other income after deducting the principal amount.

Abhishek Dugar
CA, Mumbai
3576 Answers
170 Consultations

5.0 on 5.0

1. PF is not taxable. You can show it in ITR as exempt income.

2. Yes. It is fully taxable.

Karishma Chhajer
CA, Jodhpur
1132 Answers
5 Consultations

5.0 on 5.0

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