income tax calculation on PF withdrawal

binod dokania 1
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I have a query for income tax calculation on PF withdrawal. I am salaried person and for FY 2011-12 i have income from salary and PF withdrawn. I have withdrawn the PF (deposited in FY2005-06)in FY 2011-12.PF was deposited with a trust and they have deducted the TDS @10% before payout and deposited the TDS to govt. In FY2005-06(at the time of deposit) I was falling in 10% bracket whereas at the time of withdrawal I am falling in 30% bracket. Do i need to pay the balance TDS (@20%) or some sort of indexation is there to avail the tax exemption of PF? I can provide the details e.g. form 16s in case it is required. If you have any calculator/example for this then it will be helpful.

epf-withdrawal income-tax
1 Answers

taxable portion of PF would be added to your taxable income now. If you fall in 30% slab rate, it would be taxable @ 30%.

But not whole withdrawal amount would be taxable. Read more details: How to calculate tax on EPF withdrawal

Pankaj Batra5212

Thanks Pankaj,

It really helped. One more question which ITR is applicable to me in this case?

binod dokania•

ITR1 would work for you.

Pankaj Batra•

Thanks Pankaj,

One more question. My previous employer has deducted the amount (rebate u/s 80C/CC to be withdrawn taken in 2005-06) and deposited the same to IT department. Now when i am including my PF withdrawal amount in this ITR1. I have included the contribution from employer and interest on it in income from salary, interest on contribution from my side in income from other sources, I have to pay some tax. So queries:

  1. I paid this tax as self assessment tax . Is it OK?
  2. when i calculate the tax in ITR i am getting a refund of RS 897 which is the amount which employer has deducted due to exemption taken in 2005-06. I am little confused Am I missing any thing here? otherwise there should not be any tax payable/refund.
binod dokania•
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