07 January 2021
So a person has left job in 2015-16 but did not transfer or withdraw EPF balance till 2019-20. Since EPF contribution was not done for continuous 5 years and withdrawn it has become taxable. After checking all the provisions, the conclusion was that all the parts of the EPF balance were taxable.
From what I have read, Employer's contribution + Interest on Employer's contribution + Employee's contribution will be taxed under Salaries and Interest on Employee's contribution will be taxed under Other Sources.
The query is,
(1) If to be shown under Salaries should we disclose it under 17(1) or 17(3)?
(2) Also point no. 2c under Other Sources has an option for Accumulated balance of recognized provident fund taxable u/s 111. Details regarding Assessment Year, Income benefit & Tax benefit are asked. Can someone guide me on how to fill these.