Epf withdrawal
This query is : Resolved
13 March 2013
Hello
I have made an investment of Rs. 80000 in PPF and Rs. 20000 is my deduction u/s 80C for EPF contibution from my employer.
I'll be quitting the company in May 2013 and will withdraw the amount from EPF which would eventually become taxable as continuous service of 5 yr has not been completed.
So, my question is, may i invest 20000 more in PPF and in the return show that i have claimed the 80C deduction over PPF only and not on EPF, so that part of my contribution withdrawn does not becomes taxable next year and for 2012-13 PY i get full deduction u/s 80C?
I have made an investment of Rs. 80000 in PPF and Rs. 20000 is my deduction u/s 80C for EPF contibution from my employer.
I'll be quitting the company in May 2013 and will withdraw the amount from EPF which would eventually become taxable as continuous service of 5 yr has not been completed.
So, my question is, may i invest 20000 more in PPF and in the return show that i have claimed the 80C deduction over PPF only and not on EPF, so that part of my contribution withdrawn does not becomes taxable next year and for 2012-13 PY i get full deduction u/s 80C?
13 March 2013
This way you can avoid tax on your EPF contribution for current F.Y. But still employer contributions, interest on employer contributions and interest on your contributions( including current year) would be taxable.
13 March 2013
Yes that is ok
I just wanted to confirm that would i get refund of the tds deducted on my contribution on showing that the 80C deduction for 2012-13 PY was taken only on PPF amount
I just wanted to confirm that would i get refund of the tds deducted on my contribution on showing that the 80C deduction for 2012-13 PY was taken only on PPF amount
13 March 2013
Yes, there is no question of refund. In this case you have availed maximum deduction u/s 80C ( Thru PPF only)for 100,000lakh. Only thing that you do to need to pay your current year's PF at the time of withdrawal as you have not taken any rebate for the same.
14 March 2013
but there are instructions to PF Funds to deduct TDS on withdrawal...isnt it?
14 March 2013
No, Provident Fund department of India never deduct TDS from any claim settlement. Employees have to assess their tax liability and pay the same if required.
But if your company is having own PF fund trust, applicable taxes are recovered from settlement.
But if your company is having own PF fund trust, applicable taxes are recovered from settlement.
14 March 2013
No, Provident Fund department of India never deduct TDS from any claim settlement. Employees have to assess their tax liability and pay the same if required.
But if your company is having own PF fund trust, applicable taxes are recovered from settlement.
But if your company is having own PF fund trust, applicable taxes are recovered from settlement.
14 March 2013
Yes it has has its own trust and would deduct tds on withdrawal
14 March 2013
Then , please explain them that you are not claming EPF u/s 80C in current year. If they still don't not agree, you can always claim with your ITR.
14 March 2013
one more thing ....this amount of withdrawal(my EPF contribution) would be added to my income for the PY 2013-14 or not.
As i know that i'll not be having taxable salary in PY 2013-14
As i know that i'll not be having taxable salary in PY 2013-14
14 March 2013
Yes, it would be added to your income in which you have withdrawan your pf accumulations i.e fy 2013-2014, in your case.
14 March 2013
and still taxed ???....as according to the provisions, the withdrawal amount is taxable to the extent not taxed earlier.
So if it is not taxed earlier, then it should be taxable even if the income in current PY is not taxable...right??
So if it is not taxed earlier, then it should be taxable even if the income in current PY is not taxable...right??
14 March 2013
If you dont have taxable income ( including Pf )in current year ( 2013-2014), you do not need to pay any taxes.
Ex: your PF settlement is for Rs.180000 and this is your only income in Fy 2013-2014, you do not need to pay tax.
Ex: your PF settlement is for Rs.180000 and this is your only income in Fy 2013-2014, you do not need to pay tax.
14 March 2013
ohkk...
Thank you very much for taking up so many questions and replying patiently.
Thank you very much for taking up so many questions and replying patiently.
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