Respected Sir/Madam, I have completed 11 years in the same organization and still with the organization I have received total income 2.5 lac per annum in this year till Feb 18 But i withdraw 97,200/- from EPFO employ provident fund in Jan 2018 mentioning health issue, this reason was selected wrongly while selecting and informed EPFO office that I going to use this amount for Flat purchase but no response from them yet but I have given cheque to Builder with this amount plus 5000/- from my pocket. This was not charged for Income tax nor TDS cut untill today. Once again i requested for advance withdraw for amount 1.7 lac with the flat purchase reason as I am not able to bear the EMI amount of home loan untill 1 year due to my other running personal loan EMI This amount is yet to reach my salary account My question is whether a TDS will be charged or income tax needs to pay in this year or next year as I am going to keep the 1.7 lac in my salary account for next year with reducing amount of 4000/- towards home loan EMI from 1.7 lac which will go increasing as and when builder demands and finally 12600/- after possession of the flat in Mar 2019
Hi,
Since you have more than 5 years of continuous service, the Epf will not be taxable. However, rather than keeping the EPF amount in your bank account, why dont you repay part of the loan so that the EMI comes down immediately and you save interest too.
Regards,
Nikhil
Thank you sir for your informarion, I have a personal loan from icici which is getting over by Dec 2018 and another company loan is also getting closed by Jan 2019,apart from these i have another icici personal loan closing in Dec 2021. So I will not be able to bear home loan till atleast jan 2019 as 2 personal loans will close Untill Jan 2019 atleast I need EPF balance in my salary account as making part payment towards will just reduce 1000/- or so but still 3000/- or near amount i will not be able to bear from my salary, Builder is planning to take 5lac in this month and EMI of 4000/- will start. Please guide me
No need to pay tax on EPF withdrawal after 5 years of continuous service and no need to reflect the amount in ITR. Pay the installments as it is as there is no complication if you pay them from salary account.
Understand. You can go ahead as you plan considering the other financial obligations you have. You can call me further for any suggestions/ clarifications on how to minimise your interest outgo.
Regards,
Nikhil.
Hi,
As per rules, any amount withdrawn from EPF contribution after 5 years of service is not liable to be taxed. As such, any of your withdrawal shall be tax free.
Regards,
Hi
Since you have completed more than 5 years of service, there would be no tax; it is tax exempt. Hence there would be no TDS or tax liability.
No TDS or any tax liability on amount withdrawn from EPF once you have completed 5 yrs of service.
