PF withdrawal before 5 years

Hi

If PF is withdrawal less than 5 years then as mentioned earlier it would be taxed as given below.

The employer’s contribution and interest, thereon, would be fully taxable as as profits in lieu of salary or ‘salary income’ in the hands of the individual.

The employee’s contribution would be taxable to the extent of deduction claimed under Section 80C, if any, under the Income-tax Act,1961 and

The interest earned on employee’s total contributions would be taxable as ‘income from other sources’ in the hands of the employee.

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

Thanks and regards

Abhishek Dugar

CA CS B.Com

Hi,

Practically it's not possible to revise past 3 years return. Hence, we recommend to include the income in current year return.

Your PF maturity amount has 3 components in it

1. Employee contribution of past 3 years

2. Employer contribution of past 3 years

3. Interest Theron

Hence, all these 3 components should be added in current years return as mentioned in my original reply.

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

Thanks and regards

Abhishek Dugar

CA CS B.Com

Hi,

The details of the employer's contribution, employee's contribution and interest earned will be mentioned in your PF statement. Nowadays you can access your PF account online.

Further, you can revise only the return for FY 2015-16 (i.e. AY 16-17) till 31 March 2018. You cannot revise the returns for the prior years.

Trust this clarifies.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

TDS is applicable if the PF withdrawl is more than Rs 50,000/- w.e.f. 1st June 2016 and it was Rs. 30,000/-. Now in your case, pl check if Tax was deducted at source on PF withdrawals, if any, upto 31st March 2016. If there is TDS and you did not file returns for the FY 2015-16, you can file the return now and claim refund, if the tax liability is less than the TDS. On the other hand, if you don't have tax liability and you don't have claim for refund, it is not mandatory to file IT Return.

You need not revise the return for FY 16-17 for the PF withdrawals / contributions for last 3 years. You need to offer only the income pertaining to the FY 16-17 and not for earlier years.