PF Withdrawn Money
This query is : Resolved
09 July 2024
My Son was in Service in India May-2018 till Jul-2020 , then left the Employment and went to abroad for Studies .
His EPF money withdrawn in full last Nov'23 around Rs.1.18 lACS . As per 26AS TDS deducted Rs. 13144 /- ( REGIONAL OFFICE BOMMASANORA 2) . Need to claim this deducted amounted since his overall Earnings is less than basic Exemption of Rs. 2.50 / 3.00 lakhs
While filing IT , where should we show this amount .
Should it be shown Under Salary head ( Salary from Provident Fund Office ) , if we show under salary head subsequently it offers another Rs.50000 /- Standard deduction , Is it OK . or should we show it as Income from other Source .
In IT - TIS it is said as - Receipt of accumulated balance of pf from employer u/s 111
His EPF money withdrawn in full last Nov'23 around Rs.1.18 lACS . As per 26AS TDS deducted Rs. 13144 /- ( REGIONAL OFFICE BOMMASANORA 2) . Need to claim this deducted amounted since his overall Earnings is less than basic Exemption of Rs. 2.50 / 3.00 lakhs
While filing IT , where should we show this amount .
Should it be shown Under Salary head ( Salary from Provident Fund Office ) , if we show under salary head subsequently it offers another Rs.50000 /- Standard deduction , Is it OK . or should we show it as Income from other Source .
In IT - TIS it is said as - Receipt of accumulated balance of pf from employer u/s 111
09 July 2024
If the continuous employment duration is less than five years, then the contribution of the employer to the EPF as well as the interest received on it is taxable in the income tax return of the subscriber under the category 'income from Other Sources'.
An employees' own contribution becomes taxable under the head 'salary' if withdrawal is made before completion of five years and if you have claimed deduction on that contribution under Section 80C of the Income Tax Act.
In the event of a withdrawal prior to five years, the interest received on the subscriber's own contribution to the EPF shall be taxed under the head of 'income from other sources'.
An employees' own contribution becomes taxable under the head 'salary' if withdrawal is made before completion of five years and if you have claimed deduction on that contribution under Section 80C of the Income Tax Act.
In the event of a withdrawal prior to five years, the interest received on the subscriber's own contribution to the EPF shall be taxed under the head of 'income from other sources'.
18 July 2024
While we filed ITR for My Son , we received acknowledgment immediately , later we received SMS stating " Caught as defective and Notice U/S 139(9) has been emailed to you . However no email received till now to understand what is the notice . On checking the e-proceeding in the Website it says pl find attached the Notice U/s 139 (9) , we could not see the attachement in website , May we have your guidance on this how to see the Notice and understand the defect and correct the same
18 July 2024
I may be technical glitch. You can file grievance with the screenshot, asking for the missing email, if any.
Message likes :
1 times
18 July 2024
thanks for the feed back , do we need to file the grievance in same IT portal or do we have any e mail id . Can you pl share if any email id .
18 July 2024
thanks for the feed back , do we need to file the grievance in same IT portal or do we have any e mail id . Can you pl share if any email id .
18 July 2024
File it through your own e-filing profile, after login.
Message likes :
1 times
18 July 2024
Thanks for the guidance ,
Error said in Notice is TDS being Claimed , the corresponding receipts are not offered in respective Income Schedule .
Actual TDS as per Traces
1. Section 192 A - Rs.13144 /- ( EPF TDS WHILE MADE FINAL SETTLEMENT)
2. Section 195 - Rs. 264 /- ( NRO Savings Bank TDS)
While we filed we have entered the Withdrawl of EPF ( Less than 5 Yrs Service) as Other Source of Income .
Do we need to change this to different Income Schedule , if so under which scheudle Please.
Error said in Notice is TDS being Claimed , the corresponding receipts are not offered in respective Income Schedule .
Actual TDS as per Traces
1. Section 192 A - Rs.13144 /- ( EPF TDS WHILE MADE FINAL SETTLEMENT)
2. Section 195 - Rs. 264 /- ( NRO Savings Bank TDS)
While we filed we have entered the Withdrawl of EPF ( Less than 5 Yrs Service) as Other Source of Income .
Do we need to change this to different Income Schedule , if so under which scheudle Please.
18 July 2024
The EPF withdrawal should be filed in salary section/head, only interest earned over it would be u/h OS.
Message likes :
1 times
18 July 2024
Thnak you Sir . Will do accordingly .
18 July 2024
Good Luck.
Message likes :
1 times
18 July 2024
Is it necessary that the total PF amount withdrawal to be split into 3 components and shown while filing ITR
1. Employees Contribution under Section 10(11) under EI ( exempted Income)
2. Interest on Employees Share under other source of income which is taxable
3. Employers Contribution and interest towards this contribution under head Salary Income
In such scenario will the std deduction. Rs.50000/- get deducted.
TDS Rs. 13144/- under section 192 A was deducted on the total EPF balance Rs 131444/- and final payment out Rs.118300/- credited to bank account .
This is major confusion .
IT notice reads while Credit of TDS being claimed , the corresponding receipts are not offered in respective Income Schedule .
So to resolve the entry of Income Schedule need to be correct , where I'm struck up .
1. Employees Contribution under Section 10(11) under EI ( exempted Income)
2. Interest on Employees Share under other source of income which is taxable
3. Employers Contribution and interest towards this contribution under head Salary Income
In such scenario will the std deduction. Rs.50000/- get deducted.
TDS Rs. 13144/- under section 192 A was deducted on the total EPF balance Rs 131444/- and final payment out Rs.118300/- credited to bank account .
This is major confusion .
IT notice reads while Credit of TDS being claimed , the corresponding receipts are not offered in respective Income Schedule .
So to resolve the entry of Income Schedule need to be correct , where I'm struck up .
Message likes :
1 times
18 July 2024
As such answer to all three is YES.
If you do not have break up, declaring total amount under Salary head would solve the defect, as the total income is below exempted limit.
If you do not have break up, declaring total amount under Salary head would solve the defect, as the total income is below exempted limit.
Message likes :
1 times
18 July 2024
Ok , thanks a lot for such Swift reply .
In this scenario since we received the money from EPF office , we can show the employer as EPF office . Am I right in saying so .
In this scenario since we received the money from EPF office , we can show the employer as EPF office . Am I right in saying so .
Message likes :
1 times
19 July 2024
Ok , thanks a lot for such Swift reply .
In this scenario since we received the money from EPF office , we can show the employer as EPF office . Am I right in saying so .
On scrutinisinng further i have notice the following from 26AS / AIS
1. Amount Paid / Credited - Rs. 118300 /-
2. Total Tax Deducted - Rs. 13144 /-
3. Total TDS Deposited - Rs. 13144 /-
Actual amount got credited into Bank account is Rs. 118300 /- and TDS deducted is Rs. 13144 /- . Hence while filing first time , I have indicated Income From PF withdrawl is . 131444 /- , but in 26AS / AIS iy is showing Amt Credited Rs. 118300 /- .
Should i shown the Income as Rs. 131444 /- ( Rs. 118300 + Rs. 13144 ) OR only Rs. 118300 /-
Too much of confusion
In this scenario since we received the money from EPF office , we can show the employer as EPF office . Am I right in saying so .
On scrutinisinng further i have notice the following from 26AS / AIS
1. Amount Paid / Credited - Rs. 118300 /-
2. Total Tax Deducted - Rs. 13144 /-
3. Total TDS Deposited - Rs. 13144 /-
Actual amount got credited into Bank account is Rs. 118300 /- and TDS deducted is Rs. 13144 /- . Hence while filing first time , I have indicated Income From PF withdrawl is . 131444 /- , but in 26AS / AIS iy is showing Amt Credited Rs. 118300 /- .
Should i shown the Income as Rs. 131444 /- ( Rs. 118300 + Rs. 13144 ) OR only Rs. 118300 /-
Too much of confusion
Message likes :
1 times
19 July 2024
1. Employer would be his Ex-employer and not EPF.
2. 1,31,444/- is the taxable income in aggregate.
2. 1,31,444/- is the taxable income in aggregate.
Message likes :
1 times
19 July 2024
Dear Sir
Thanks sir , But given below the notice narration what was received
Error Description
The gross receipts shown in Form 26AS, on which credit for TDS has been claimed, are higher than the total of the receipts shown under all heads of income, in the return of income. Thus, while credit for TDS is being claimed, the corresponding receipts are not offered in the respective income schedules, to arrive at the taxable total income. Hence, the return of income filed is regarded as defective, as provided in Explanation (a) under section 139(9).
Probable Resolution
The correction of this defect has to be made by filing a corrected return and disclosing the complete receipts, as per Form 26AS. Alternatively, the claim of TDS may be made corresponding to the extent of income/receipts disclosed in the return. Please note that Credit for the TDS is allowable to the person in whose hands the income is assessable and in the year (AY) in which such income is assessable (Rule 37BA). Also note that if the defect is not corrected with-in the time allowed, return will be processed and the credit for TDS will be allowed proportionately.
since it says the amount not matching the doubt is raised , shoud we say Rs.118300 /- AS PER 26 AS /TIS
Orginally i have showed Rs. 131444 /- ( HOWEVER I SHOWN THAT AS INCOME FROM OTHER SOURCE HEADING)
Thanks sir , But given below the notice narration what was received
Error Description
The gross receipts shown in Form 26AS, on which credit for TDS has been claimed, are higher than the total of the receipts shown under all heads of income, in the return of income. Thus, while credit for TDS is being claimed, the corresponding receipts are not offered in the respective income schedules, to arrive at the taxable total income. Hence, the return of income filed is regarded as defective, as provided in Explanation (a) under section 139(9).
Probable Resolution
The correction of this defect has to be made by filing a corrected return and disclosing the complete receipts, as per Form 26AS. Alternatively, the claim of TDS may be made corresponding to the extent of income/receipts disclosed in the return. Please note that Credit for the TDS is allowable to the person in whose hands the income is assessable and in the year (AY) in which such income is assessable (Rule 37BA). Also note that if the defect is not corrected with-in the time allowed, return will be processed and the credit for TDS will be allowed proportionately.
since it says the amount not matching the doubt is raised , shoud we say Rs.118300 /- AS PER 26 AS /TIS
Orginally i have showed Rs. 131444 /- ( HOWEVER I SHOWN THAT AS INCOME FROM OTHER SOURCE HEADING)
19 July 2024
""The gross receipts shown in Form 26AS, on which credit for TDS has been claimed, are higher than the total of the receipts shown under all heads of income, in the return of income. ""
It means you have declared less income.
Resolution, income shown in salary is declared '0' while TDS has been claimed over it.
In short, declare the income in Salary head.
It means you have declared less income.
Resolution, income shown in salary is declared '0' while TDS has been claimed over it.
In short, declare the income in Salary head.
Message likes :
1 times
25 August 2024
You are welcome.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Payment of bonus act - notice pay recovery
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
