1. Employee’s contribution 2. Interest on employee’s contribution 3. Employers contribution and interest on employer’s contribution
A. This is the amount contributed by employee to EPF. This portion of your withdrawal is not taxable. However, if you have claimed deduction under section 80C on your contribution in earlier years, you may have to pay additional tax as if 80C was not claimed for those years.
B. Interest on employee’s contribution This portion is taxed as income from other sources.
C. Employer’s contribution and interest on employer’s contribution Employer’s contribution and interest on it is fully taxable. It is taxed under the head salary in your tax return. When TDS is deducted on it, you are likely to see an entry under salary TDS in your Form 26AS for it.
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