Reclaim the PF deduction

Hi,

I worked for an Organization (with their own PF Trust) from 1st dec 2006 to 7 nov 2011. After leaving the job (for personal reasons), i applied for withdrawal of PF in may 2012 and got both the PF as well as EPS portion in next 2 months

Since, my employment was less than 5 years, tax @ 30% was deducted by my employer on PF part as well as by the Income Tax department on EPS part. As of now i am not working any where (unfortunately). my questions are

  1. Can i reclaim the tax deducted by my employer next year while filing Tax for FY 2012-2013? I just checked my Form 26 AS and my previous employer has deducted TDS showing the PF amt as Salary which means that they will be providing Form 16 for that also? what will be the dates of employment on that form 16(just curious)?

  2. Similarly, can i reclaim my tax deducted by IT dept on EPS part? Will they be giving me an separate form 16 for the TDS they have deducted on EPS? is there an separate procedure to do this? remember my previous org has an PF trust

Can anyone please elaborate on this and let me know what is the procedure for these two scenarios?

Regards

asked Oct 08 '12 at 12:40 by vgupta_2002 1111


You are liable to pay income tax on EPF withdrawal in case five years of service is not completed. This amount would be added to your taxable income tax and taxed as per you slab rates.

The amount would be taxed in same financial year in which it is received. So in FY 2012-13, in case you did not have any other income source and tax was deducted in highest rate, you can claim refund on some part of PF withdrawal.

Payment received from employer’s contribution plus its interest would be taxable as "income from salaries". Interest on the employee’s contribution is taxable as "income from other sources". Amount received for employee contribution is exempt from tax.

For all TDS deductions, you would get form-16 or form-16A from deductor. Form-16 is issued for financial year and no employment date needs to be shown in it. It shows all payments and tax deducted in a financial year.

answered Oct 08 '12 at 17:24 by Pankaj Batra 5.2k320

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Hi Pankaj, Thanks for your reply. So what i understand from this is that in Form 16/16A, there will be two heads "income from salaries" and "income from other sources". Any Tax deducted on former cannot be claimed for refund where as refund can be claimed for the later while filing IT returns next year. So, does that mean there will be no refund on EPS part just because EPS contains only "Employers" contribution? regards
(Oct 10 '12 at 12:53) vgupta_2002
Form 16/16A may not have PF amount under different heads but marked as taxable amount only. But you need to show it under different head while filing income tax returns. Refund can be asked for both withdrawals. You need to compute total tax on total income and whatever is extra deducted should be refunded.
(Oct 10 '12 at 16:58) Pankaj Batra

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Asked: Oct 08 '12 at 12:40

Seen: 12,205 times

Last updated: Oct 10 '12 at 16:58