I am a salaried employee of a private company.
This year in form 16, i was shown an entry in Table 7(b) "Add: Any other income reported by the employee under section 192(2B)"
"Income uinder the head other sources offerd for TDS" and the amount was added to my total income.
When i checked with my finance team, they told me that this amount was the excess above 2.5Lakhs of my PF saving and so i must report and pay tax.
Now, how is it fair that i pay tax even prior to withdrawal of that money?
I did some reading on section 10
The rule says “as reduced by withdrawal” – which means that this tax will be applicable only upon withdrawal and not upon deposit – else it will double taxation – I am paying for something that I have even withdrawn
https://www.datocms-assets.com/40521/1630982363-a-it-95-notification.pdf
Can some learned person guide if this is correct?
CAclubindia
