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Taxability of PF Withdrawal for Expats

01 August 2023

Is it mandatory for an Ex Expatriate to file income tax return for the year in which he received pf withdrawal refund.

does this criteria also remains same if he had employment in India for less than 5 years.

TDS is also deducted on the PF Refund.

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174595 Points)
Replied 01 August 2023

Yes, if his aggregate income exceeds basic exemption limit...

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Ridhima Jain (18 Points)
Replied 01 August 2023

Will this hold true if he has no other income for that fy and he didn't file returns in previous periods after his employment in India ended.?

MPR Sanjay Kumar (3109 Points)
Replied 01 August 2023

@ honourable dhirajlal sir , section 80 ccc vs 80 cc'd deductions diffence could you please tell me

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 01 August 2023

Hi, Ridhima, if in the year of receipt of pf withdrawal his income exceeds the basic exemption limit as per slabs then he have to file the ITR

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174595 Points)
Replied 01 August 2023

PF withdrawal is taxable when his/her employment was less than 5 years.

Filing return after leaving employment has no connection with the taxability of the EPF withdrawal.

If aggregate income in any assessment year does not exceed the basic exemption limit, ITR filing is not mandatory. Otherwise, he/she is liable for consequences for not filing return in that particular AY.

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Akhil (Student CA ) (1001 Points)
Replied 01 August 2023

If tds got deducted the file the i.t.r and get it refund....even if income is below 2.5lac

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174595 Points)
Replied 01 August 2023

Section 80CCC

An individual taxpayer who has subscribed to an annuity plan which has been offered by an approved insurance company.

The provisions of Section 80CCC are specifically applicable to those insurance providers in India that offer annuity or pension plans. The insurer could be a public entity or a private entity as well.

The deduction under 80CCC is part of the overall deduction under section 80C. The deduction under this section is clubbed under the deduction of 80C and 80CCD, hence total deduction of Rs 1.5 lakh is available.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174595 Points)
Replied 01 August 2023

DEDUCTION UNDER SECTION 80CCD

Section 80 CCD(1) gives a tax deduction on NPS contributions up to 10% of their salary (basic salary + DA) made by employees. However, the total amount of deduction of 80 C and 80 CCD(1) cannot exceed Rs.1.50 lakhs in the previous year.

Section 80 CCD (1B) gives an additional deduction of Rs.50,000 on their NPS contributions.

Section 80 CCD(2) provides that employees can claim a deduction on the NPS contribution of up to 10% of salary (14% of salary for Central Government) made by the employer.