I had resigned from my last job, after completing four years and 10 months, including the notice period. I have withdrawn the entire EPF and EPS amounts. I have received it after deducting the TDS. The credit I received in the month of April 2016. As I have withdrawn it before completing five years, the amount is taxable. How should I show it while filing return? Do I need to show it in my IT return?
- Sujay S Thakur
Since you haven't completed five years of service, your EPF withdrawal will be taxed. Your employer's contribution to EPF and the interest earned on it would be taxed as salary. The tax deduction claimed by you under Section 80C on your own contribution to the EPF would also be taxed as salary. The interest earned on your contribution would be taxed as "income from other sources." The tax rate would depend on the income tax slab applicable to you in which the contributions were made.