Taxability of epf withdrawal before 5 years.

rahul (none) (91 Points)

27 June 2016  

Hi,

Please can anyone help me with the taxation of the withdrawal of EPF (100%) before completion of 5 years. I am not sure about the amounts and under which Income heads the amounts would be taxable.

Take the following figures as an example: (These were the amounts received)

1) Employee's Contribution - 100 (Was fully claimed under 80C)

2) Employer's Contribution - 80 

3) Pension Contribution - 20

4) Interest on Employee's contribution - 15

5) Interest on Employer's contribution -  10

 

As far as I have understood, employer's contribution (Rs. 80 + 20) and interest there on (RS.10)  should be taxable under the head Salary as it was not taxable during the years in which the contribution was made. Also interest on Employee's contribution (Rs. 15) should be taxed as other sources. 

Please confirm whether the above treatment is correct and guide about the taxability of the employee contribtion (Rs 100) which was earlier claimed under 80C in the year of contribution. 

Thanks

Rahul