My wife has withdrawn her PF from her company in which she worked for 6 years. The PF department has not deducted any tax on the withdrawal amount. 1) Do we need to include this PF withdrawal in IT return? 2) If yes, which ITR form I need to use and under which section I need include this income?
-Prasad Pai N
There is no TDS deduction on your wife's PF withdrawal as she has completed 5 years. The EPFO will deduct tax on source (TDS) only if an employee fits the following two criteria:
1. The EPF withdrawal amount is less than 50000
2. The employee has not completed total 5 years of continuous service and the EPF withdrawal amount is more than 50000.
Yes, the EPF withdrawal will be taxed as income and you need to include it in your ITR under the head 'Income from Salary'.
This article was originally published on June 12, 2017.
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