I left my employment 25 years ago 1987, but did not withdraw/transfer my EPF then.
(company is leading IT company in the country)
Now I have almost retired and The EPF due with company private trust accumulated interest is substatial. As per recent IT act re PF of past or ex employees no longer earn interest, and company asked us to settle this PF O/s to my account.
The company is telling me that they will deduct the tax @40% + 5% surcharge from this payment.
Please advice if this is correct practice?
If deducted at this highest tax rate of 1987, how will this be accounted in current year?
how can it be recovered from IT dept if company insists on deducting such large amount?
urgent advice needed.
Regds and thanks in advance.
Gautam Dalal
