• Provident fund withdrawal by NRI, taxation rules

Hi,
I worked in India from 2012 to 2017, completing 4 years and 8 months. I have provident fund of less than INR 2.5lacs. I've been working abroad since then. I have following queries:
1. I want to withdraw my entire provident fund, I claimed tax deduction under section 80C while I was employed in India. What percentage will I be taxed and how? note the amount is below 2.5lacs.
2. The last tax return I files was for 2017-2018 year. I also have form 15g that I can provide. Will I still be taxed?
3. Is there a way to claim tax refund? Will I need to file a tax return to claim refund?

Please if you can help with the above queries in proper detail. Thanks!
Asked 29 days ago in Income Tax

If total amount is below 2.5 lakh no tax would be charged but PF will deduct TDS as you have not worked for 5 year in India.

 

Yes in my opinion practically PF people dont consider 15G.

 

Yes you can file return and claim refund and if you have any income in India even though below 2.5 lakh you should file return being NRI. We can guide you with same.

 

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

Thank you.

Naman Maloo
CA, Jaipur
4081 Answers
74 Consultations

5.0 on 5.0

If you have not mentioned you are non-resident then 10% otherwise 31.2%

Naman Maloo
CA, Jaipur
4081 Answers
74 Consultations

5.0 on 5.0

In your case, period of continuous service is less than 5 years therefore withdrawal from PF would be considered as withdrawal from unrecognized provident fund. In such case, employee contribution is exempt, employer contribution and interest thereon is taxable under the head Salaries, interest on employee contribution is taxable under the head income from other sources. Exemption claimed earlier would be taken back and you are liable to pay the difference of tax if any for all such years in which exemption was claimed. As the amount of payment is more than Rs.50,000 therefore TDS would be applicable.

1. Assuming you are NRI, TDS rate would be 10.4%

2. You can submit Form 15G

3. Calculate the net tax payable if any for all previous years in which exemption was claimed for employee contribution. 

 

For detailed discussion you may opt for phone consultation.    

Vivek Kumar Arora
CA, Delhi
4518 Answers
638 Consultations

5.0 on 5.0

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