I worked in a company from June 2008 to June 2012 and then resigned due to higher studies. My 2012-13 salary is ₹80,000 (from April 2012 to June 2012). My company has its own recognized PF trust. I withdrew my PF contributions after resigning, and they mailed me the cheque in October 2012. As per my company's Form 16, they have deducted tax on PF of ₹10,000 on the PF withdrawal amount of ₹80,000. The ₹80,000 consists of both my contribution, employer contribution, as well as interest on both. I had utilized my deposits under PF to claim tax deductions under 80C from FY 2008-09 to FY 2011-12. I withdrew this PF in 2012-13. As per the company receipt, this tax is on account of the tax on employer contribution and interest paid out on PF and the earlier tax benefits I claimed under 80C from PF. Will I get the refund of ₹10,000 as my overall income in this FY is below ₹200,000? I have the breakup of employer and employee contribution and their respective interests of the ₹80,000 amount.
I have gathered from this community that:
1. Employer contribution and interest on it have to be shown under the head "Salaries."
2. Interest on employee contribution will come under the head "Income from Other Sources."
3. Amount received for employee contribution is exempt from tax.
Payment received from the employer's contribution plus its interest would be taxable as "Income from Salaries." Interest on the employee's contribution is taxable as "Income from Other Sources."
Do I have to show the employee contribution again in the tax return? If yes, under which head: "Salaries" or "Income from Other Sources"?
Can I get the refund on this TDS of ₹10,000 as my income this year is below ₹200,000?
From India, Kolkata
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I have gathered from this community that:
1. Employer contribution and interest on it have to be shown under the head "Salaries."
2. Interest on employee contribution will come under the head "Income from Other Sources."
3. Amount received for employee contribution is exempt from tax.
Payment received from the employer's contribution plus its interest would be taxable as "Income from Salaries." Interest on the employee's contribution is taxable as "Income from Other Sources."
Do I have to show the employee contribution again in the tax return? If yes, under which head: "Salaries" or "Income from Other Sources"?
Can I get the refund on this TDS of ₹10,000 as my income this year is below ₹200,000?
From India, Kolkata
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How to Pay Income Tax on the PF Amount Received?
How do I know how much needs to be paid as income tax on the PF amount received?
In my case, I worked in an organization from Nov 2006 to Aug 2011 (not completing 5 years). I applied for the withdrawal in Aug 2012 and received the PF amount in Jan 2013. Since I claimed the PF amount after 5 years and 9 months, do I still need to pay income tax on the PF amount received?
Regards
From Brunei Darussalam, Bandar Seri Begawan
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How do I know how much needs to be paid as income tax on the PF amount received?
In my case, I worked in an organization from Nov 2006 to Aug 2011 (not completing 5 years). I applied for the withdrawal in Aug 2012 and received the PF amount in Jan 2013. Since I claimed the PF amount after 5 years and 9 months, do I still need to pay income tax on the PF amount received?
Regards
From Brunei Darussalam, Bandar Seri Begawan
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Tax on premature PF withdrawal.pdf