INCOME TAX DIDUCTED FROM PF WITHDRAWAN
This query is : Resolved
07 July 2011
DEAR SIR,
I HAD GIVEN RESIGNED FROM MY PREVIOUS COMPANY SERVICING THEIR FOR 1YEAR AND 17 DAYS.
WHEN I WITHDRAW MY P.F. FROM THEIR P.F. TRUST , THERE R AROUND 8475/= Rs. TDS WAS CUT IN FROM MY PF AMOUNT 90000/=.
SIR I HAD ASKED TO MANY PEOPLE AND THEY REPLY THAT "AS PER RULE THERE IS NO ANY TDS DIDUCTION FROM PF WITHDRWAL. "
SIR, AS A KIND PERSUAL PL. SORT OUT MY MATTER.
SIR, SHOULD I GET BACK THAT AMOUNT ?
IF I HAD SHOWN THAT AMOUNT IN MY RETURN , CAN I CLAIM REFUND FOR THAT DIDUCTED AMOUNT?
I HAD GIVEN RESIGNED FROM MY PREVIOUS COMPANY SERVICING THEIR FOR 1YEAR AND 17 DAYS.
WHEN I WITHDRAW MY P.F. FROM THEIR P.F. TRUST , THERE R AROUND 8475/= Rs. TDS WAS CUT IN FROM MY PF AMOUNT 90000/=.
SIR I HAD ASKED TO MANY PEOPLE AND THEY REPLY THAT "AS PER RULE THERE IS NO ANY TDS DIDUCTION FROM PF WITHDRWAL. "
SIR, AS A KIND PERSUAL PL. SORT OUT MY MATTER.
SIR, SHOULD I GET BACK THAT AMOUNT ?
IF I HAD SHOWN THAT AMOUNT IN MY RETURN , CAN I CLAIM REFUND FOR THAT DIDUCTED AMOUNT?
07 July 2011
PF is governed with 80C provisions, where 5 years lock in ( to be precise, 4 years +240 days) is maintained, prematured termination of pf is added back to the income of the year of withdrawl, so TDS is deducted. you are set free to add the gross amount in your taxable income and claim the TDS deducted.
07 July 2011
THERE IS NO SECTION 80C IMPACT IN CASE OF PF. SECTION 80C(5) AND SECTION 80C(6A) IS SILENT IN THIS REGARD.
PAYMENT FROM PF IS GOVERNED BT SECTION 10(12)[WHICH DEALS WITH RPF WHICH IS THE CASE HERE]
AS PER SECTION 10(12) the accumulated balance due and becoming payable to an employee participating in a recognised provident fund IS EXEMPT to the extent provided in rule 8 of Part A of the Fourth Schedule
RULE 8 REFEREED TO ABOVE LAYS DOWN CERTAIN CONDITIONS FOR EXEMPTION. THE FIRST ONE IS THAT THE EMPLOYEE SHLD HAVE SERVED FOR CONTIMUOUS PERIOD OF FIVE YAERS
IN THIS CASE THE QUERIST HAS LEFT THE JOB AFTER ONE YEAR OR SO HENCE NO EXEMPTION UNDER SECTION 10(12) WILL BE ALLOWED.
THE SUM RECEIVED IS TAXABLE.
AS PER RULE 9 of Part A of the Fourth Schedule
THE INCOME OF ALL THE YEARS WILL BE RECOMPUTED AS IF THE FUND IS NOT RECOGNISED TAX ON INCOME SO RECOMPUTED WILL BE DETERMINED AND SUM OVER AND ABOVE TAX ALREADY PAID BY ASSESSEE WILL BE REDUCED FROM THE TAX SO DETERMINED AND BALANCE WILL BE PAYABLE
CA MANOJ GUPTA
JODHPUR
09828510543
gm2104@gmail.com
PAYMENT FROM PF IS GOVERNED BT SECTION 10(12)[WHICH DEALS WITH RPF WHICH IS THE CASE HERE]
AS PER SECTION 10(12) the accumulated balance due and becoming payable to an employee participating in a recognised provident fund IS EXEMPT to the extent provided in rule 8 of Part A of the Fourth Schedule
RULE 8 REFEREED TO ABOVE LAYS DOWN CERTAIN CONDITIONS FOR EXEMPTION. THE FIRST ONE IS THAT THE EMPLOYEE SHLD HAVE SERVED FOR CONTIMUOUS PERIOD OF FIVE YAERS
IN THIS CASE THE QUERIST HAS LEFT THE JOB AFTER ONE YEAR OR SO HENCE NO EXEMPTION UNDER SECTION 10(12) WILL BE ALLOWED.
THE SUM RECEIVED IS TAXABLE.
AS PER RULE 9 of Part A of the Fourth Schedule
THE INCOME OF ALL THE YEARS WILL BE RECOMPUTED AS IF THE FUND IS NOT RECOGNISED TAX ON INCOME SO RECOMPUTED WILL BE DETERMINED AND SUM OVER AND ABOVE TAX ALREADY PAID BY ASSESSEE WILL BE REDUCED FROM THE TAX SO DETERMINED AND BALANCE WILL BE PAYABLE
CA MANOJ GUPTA
JODHPUR
09828510543
gm2104@gmail.com
07 July 2011
IF YOU WITHDRAW PF AMOUNT BEFORE 5 YEARS OF SERVICE, the amount will be taxable in your hands.
07 July 2011
I disagree with all the experts.
In fact there are tow types of Providend Fund
1) Recognised
2) Unrecognised.
Exemption is available for recognised Provided Fund
Withdrawal from unrecognised PF even after 5 years is taxable and no benefit u/s 80C is available.
In this case it is a case of Unrecognised Profidend fund.
Dear query raiser kindly confirm from your company these facts. If it is unrecognised PF then the TDS has correctly been deducted.
In fact there are tow types of Providend Fund
1) Recognised
2) Unrecognised.
Exemption is available for recognised Provided Fund
Withdrawal from unrecognised PF even after 5 years is taxable and no benefit u/s 80C is available.
In this case it is a case of Unrecognised Profidend fund.
Dear query raiser kindly confirm from your company these facts. If it is unrecognised PF then the TDS has correctly been deducted.
07 July 2011
Dear Mr Aggarwal
This may be a case of RPF or URPF
I have replied assuming it to be case of RPF
Pl see sectionj 10(12) with Schedule IV
withdrawal from RPF is exempt only in certain cases one being withdrawal after service for a period of five years
It is not exempt in all cases
CA MANOJ GUPTA
This may be a case of RPF or URPF
I have replied assuming it to be case of RPF
Pl see sectionj 10(12) with Schedule IV
withdrawal from RPF is exempt only in certain cases one being withdrawal after service for a period of five years
It is not exempt in all cases
CA MANOJ GUPTA
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