I retired in February 2019. I obtained the ultimate fee of EPF on 11 July 2019. Will the ultimate fee of EPF be taxable?
—V.Okay. Puri
The interval of service is a vital issue. If you will have accomplished a steady interval of service for 5 years and extra, then the maturity proceeds obtained are tax-free in your arms. Also, what’s essential is the interval of holding, i.e., the corpus standing on the finish of your retirement date is the tax-free corpus. The curiosity earned on the corpus publish no lively contribution is taxable in your arms as per your marginal charge of tax. This implies that post-retirement there being no contribution, the curiosity accrued is taxable, i.e., March 2019 curiosity is taxable within the revenue tax return of FY19.
I’m working in a PSU and we now have solely NPS. In my earlier job, I used to be lined in EPF and I labored there just for three years, that means I must pay tax for withdrawal. But each time I submit the declare type, I get an error message saying “the title within the EPF doesn’t match with the title within the revenue tax database” and due to this, I’ll need to pay round 33% of the quantity as tax if I submit the request for the reason that withdrawal quantity is bigger than ₹50,000. What do I do to get the quantity claimed by paying TDS of 10% solely?
—Nitish
You must examine your title within the information of your earlier employer and your PAN card as that’s the file holder within the revenue tax database. In case there is no such thing as a distinction between the 2, then comply with up together with your earlier employer. In the occasion of any distinction within the title, it’s good to get it rectified at one of many two locations in order that it matches for ease of withdrawal. However, this won’t change the tax charge relevant.
As your steady interval of service is lower than 5 years, the PF is taxable at your marginal charge of tax.
Surya Bhatia is the managing accomplice of Asset Managers. Queries and views at [email protected]
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