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Tds on epf withdrawal

21 June 2018

Hi,

I was a resident until Nov'16 after which I got a job abroad in Jul'17 and have currently settled there. I withdrew my complete EPF in Feb'18 as I had to close it once becoming a NRI and TDS of 10% was deducted. I'm planning to file IT return for AY 17-18. My doubt is:

* Is my EPF withdrawal considered income from slaary for AY 17-18? My EPF withdrawal amount was ~4.5 lakhs. What is the taxation on my EPF withdrawal? Can I refund the TDS deducted for any extra tax paid? I don't own any other assets or have any other income in India for AY 17-18.

Thanks in advance.

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2 Replies

Pravin Purohit (79 Points)
Replied 21 June 2018

As you said the tds was deducted at the of withdrawal means you withdraw it before completion of 5 years, hence your pf withdrawal is taxable in nature.

Therefore you will be required to add the amount of withdrawal in income from salaries and file ITR.

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Jamal Kaja (3 Points)
Replied 22 June 2018

Thanks. But, I did not withdraw it because of voluntary reasons, but there was a circular that once you become a NRI you have to close the EPF account, so it shouldn't be taxable right?