income tax calculation on PF withdrawal

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 I am salaried person and for FY 2011-12 i have income from salary and PF withdrawn. I have withdrawn the PF (deposited in FY2005-06)in FY 2011-12.PF was deposited with a trust and they have deducted the TDS @10% before payout and deposited the TDS to govt.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.

asked Jul 25 '12 at 13:38 by binod dokania 1112


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

answered Jul 25 '12 at 15:58 by Pankaj Batra 5.2k320

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Thanks Pankaj, It really helped. One more question which ITR is applicable to me in this case?
(Jul 26 '12 at 09:25) binod dokania
ITR1 would work for you.
(Jul 26 '12 at 17:22) 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 My previous employer has deducted the amount (rebate u/s 80C/CC to be withdrawn taken in 2005-06) and deposited the same to IT department.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: I paid this tax as self assessment tax . Is it OK? 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.
(Jul 30 '12 at 14:57) binod dokania
Yes income tax would be paid as self assessment tax, if paid after 31st March. I am not really sure how refund for amount deducted in FY 2005-06 is being used now. I am not able to understand the issue.
(Jul 30 '12 at 17:44) Pankaj Batra
Hi Pankaj I am also in a similar situation. I withdrew my pf before 5 years completion, so my previous employer recalculated my previous incomes and deducted tax accordingly and sent me a form 16 for that as well. Only the employer's contribution and the interest on the same are shown as income in that form 16. Now when i add this amount to my current income, there is a mismatch in the tax amount and it shows as refund. I will quote the rules my previous employer cited in the next comment as it wont fit in here.
(Jul 30 '12 at 19:34) GVM
Employer contribution, interest on employer contribution and interest on employee contribution are taxable when withdrawal is done before five years.
(Jul 30 '12 at 19:36) Pankaj Batra
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Asked: Jul 25 '12 at 13:38

Seen: 4,633 times

Last updated: Jul 30 '12 at 19:36