IT on EPF withdrawal after more than 5 years of service by NRI

Hi

I am an NRI based in west. I have a question about Income Tax liability of EPF withdrawal from India after 5 years of employment. The facts are as follows:

1) Continuous employment in private companies in India between Jun-2004 to Sep-2009 (Total 5 years 4 months). For this period EPF was deducted by employers in India.

2) No employment in India since Sep-2009.

3) Consolidated EPF (>5 lakhs) was withdrawn in Feb-2016 on which a TDS of 10% was made. This amount is reflect in Form 26AS for FY 2015-16.

4) There was also some small amount (approx. 4% of EPF corpus) that is withdrawn but there was no TDS on this amount. I believe this is either Pension or Gratuity. 

Given the service length of 5 years, I believe this withdrawal of EPF is completely exempt from Income Tax. If this is true then please advise how can I file IT returns for this amount and how should I fill this up in ITR1 and claim back the TDS amount.

Many Thanks
Amit
Asked 4 months ago in Income Tax from New Delhi, Delhi
Dear Amit,

EPF withdrawal after 5 years are exempt from taxes.

You can show the same under exempt income in ITR1.

We can help you in filing your return.

Please feel free to call/ revert in case of any doubts.

Thanks and Regards
Abhishek Dugar
CA, CS, B.Com
Caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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Hello Sir,

Yes, you are correct. EPF Withdrawn after a continous service of 5 years is exempt from Tax.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
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Hello Sir,

I feel there is no exempt income tab in ITR-1, I feel to show the exempt income you need to file ITR - 2 or 2A.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
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Dear Amit,

Please use quick while ITR option, it's more easy.
I personally have never used prepare and submit ITR for ITR 1. Hence, I need to check where this field appears.
Abhishek Dugar
CA, Mumbai
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If it is there..you can put the amount there..no problem.

Just check after punching the amount in that column, your total income should not change
Abhishek Dugar
CA, Mumbai
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Sorry i think your question is already answered by my professional colleague
Shyam Sunder Modani
CA, Hyderabad
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Dear Rahul,

If it is there then you can go ahead.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
719 Answers
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