josh (IT) (256 Points)
13 February 2009Is EPF amount is taxable ? I got my EPF amount settled from my last company but the company's CA has deducted 33% tax including surchange at source on the EPF settlement amount.is this legal ?
Thanks
Josh
Kumar Gaurav
(Going...to be C.A soon...)
(1624 Points)
Replied 13 February 2009
| Originally posted by :josh | ||
| " |
Is EPF amount is taxable ? I got my EPF amount settled from my last company but the compay's CA has deducted 33% tax including surchange at source on the EPF settlement amount.is this legal ?
I think it is wrong.There is no provision for deducting TDS on EPF amount. but Not sure |
" |
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 13 February 2009
PF withdrawal is not taxable only if a person has been in continuos service for 5 years. In your case if you have had PF balance from your previous employer then such balance should have been transferred from your previous employer to your current employer and the period of service of both employers would need to be aggregated to check if you have completed 5 years of continuous service.
CA. Ashok shah
(CHARTERED ACCOUNTANT)
(333 Points)
Replied 14 February 2009
If employer’s contribution is upto 12% of salary and interest does not exceed notified rate of interest (At present 9.50% p.a.), it is not taxable.
However, the accumulated balance due and becoming payable to an employee participating in Recognised Provident Fund (RPF) is taxable u/s.17 under the head Income from Salary to the extent of Employers contribution and interest thereon, if i) he does not serve for continuous period of 5 years with the said employer or ii) termination of service is due to reasons beyond his control or iii) in case of employment with other employer, balance in RPF is transferred to RPF account maintained by his other employer.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
