Hello,
I have withdrawn my EPF & EPS completely this year. I had not completed 5 years service and hence some amount is taxable. I need help in understanding how this should be reported when I file ITR next year.
Here's what I have already figured out -
A - Employee’s contribution - Not taxable, should be reported under exempted income under section 10(11)
B - Interest on employee’s contribution - Taxed as income from other sources
C - Employer’s contribution - Taxable as profits in lieu of salary under section 17(3)
D - Interest on employer’s contribution - Taxable as profits in lieu of salary under section 17(3)
E - I have claimed EPF for deduction under section 80C in past. Since I didn't complete 5 years of service, this is now void and I need to report it as income in current year.
What I can't figure out -
1 - Whether EPS (pension) is taxable, and under which section it should be reported
2 - With reference to point E above, under which section should I report this amount as income?
3 - With reference to point E above, let's say in one of the previous years the deductions claimed under 80C were: 1.5 lakh PPF, 25k insurance premium, 28k EPF. In this case my 1.5 lakh investment limit under 80C is being exhausted by investments without taking EPF into consideration. Do I still need to report 28k EPF as salary income this year?
Thank you in advance for any helpful insight.