Income from pf vs fd


Dear Sir,  Just want to confirm on Income tax purpose.

I have service in a organization for 4.2 years and withdrawal of my PF on before 5 years,  then I have made a FD for this amount for one year Now I want to know is the total PF withdrawal amount + FD interest will be taxable. ?? like I have deposit (FD) 175000  + get interest 14000/- then both amount will be taxable.

I am in dilemma please suggest. My accountant saying that 175000 + interest received is showing in form 26AS so  the all total will be taxable.

 
Reply   
 
Lawyer in Hyderabad.Email Id:ramachary64@gmail.com

If the employee withdraws the EPF balance before completing 5 yrs of service, then EPF balance is taxable.TDS on EPF will be deducted, if withdrawal is more than Rs 50,000. This is applicable from June 2016.Earlier this limit was Rs 30,000.


Total likes : 1 times

 
Reply   
 


Self Employed

Yes, it is taxable as you have withdrawn it before completing 5 years of service. However, if this is NOT your first job and if you had any PF from previous organisation which was transferred to the current organisation then it is not taxed. However, the total duration must be 5 years altogether. 

FD Interest earned is offcourse Taxable in the Tax bracket whichever you fall into.

For EPF there is an excellent article. Please refer https://blog.cleartax.in/withdrawals-epf-taxed/

Regards

Rajesh

 
Reply   
 
Proprietor

U NEED TO PAY TAX AS PER UR TAX SLAB..

 


Total likes : 1 times

 
Reply   
 
Self Employed

Yes, according to your Tax Slab


Total likes : 1 times

 
Reply   
 

LEAVE A REPLY


    

Your are not logged in . Please login to post replies

Click here to Login / Register  



 

Search Forum:








×

  LAWyersclubindia Menu

web analytics