I had joined a job in previous financial year and left due to health concern. I had issued form 16 with TDS by employer with 80c exemption provision of PR Rs 52000/=.While I had withdrawn the PF in the same financial year, thereafter another Form 16 with TDS issued by PF office. I have to file income tax return based on both form 16s. My question is that the Rs 52000 PF exemption under 80c as stated in Form 16 should remain inexemption mode or should be included in income,while filing income return.
In the present case you can claim the PF amount in 80C. The amount you have withdrawn will again be taxed.
If you dont take in 80C and declare the PF withdrawl amount as income then there will be double tax of the same income.
In the Form16 issued by PF office it includes amount contributed by Employer also.
Sir, the PF had withdrawn in the same financial year and been taxed under form 16. My question was the PF amount shown in under 80C as tax exemption in form 16 of salaries, should remain in 80C or need to be included in income as PF withdrawn less than 3 year.
It should be in 80C only.
Thanks for advise
Thanx
Sir, As per dos and donot for e-filing on Internet has different view then your answer. *Recomputation of Income and Tax Liability if EPF is withdrawn If you have withdrawn any EPF (Partially or Fully) before serving 5 years (single or multiple employers:- then such withdrawal not only will be considered as income earned in the year of withdrawal (hence attracts Income Tax) but also, the tax exemption claimed in the present and previous years for EPF contribution, under section 80 C, will also be considered as salary income and will be taxed. That means, you are liable to pay tax on: • Withdrawn amount plus • Tax exemption claimed on PF contribution * What is your take on above statement in respect to my question.
You can send your form 16 and other details to modani005@gmail.com so that we can calculate and give you. It means the same only , we will send u computation and you will understand better
OK Sir
thanx
Sir, details send on ur mail id for suggestion
Sir, details send on ur mail id for suggestion
Since you have withdrawn P F in the same financial year, you may not claim deduction u/s 80C in respect PF amount deposited and withdrawn that is advisable It is presumed that you have withdrawn within 5 years.
As I understood that the said part is company contribution as it is not taxed as per statement provided by comoany to me, only my contirbution is been taxed. This was included in gross income. hence it should remain in 80c What is take on above facts. Either 80c PF contribution should remain in Form 16 or this instrument will not applicable here as PF instrument in withdrawn in the same financial year. pls suggest again.
This query seems to be addressed to other CAs.
Send ur details again
Sir, Alreadt send to you for re-examination
The company contribution will be taxable in the year of receipt and there will be no relief u/s 89 for such amount.
This query seems to be addressed to other CAs?
computed again and answered the query