IT on EPF withdrawal after more than 5 years of service by NRI
Hi I am an NRI based in west. I have a question about Income Tax liability of EPF withdrawal from India after 5 years of employment. The facts are as follows: 1) Continuous employment in private companies in India between Jun-2004 to Sep-2009 (Total 5 years 4 months). For this period EPF was deducted by employers in India. 2) No employment in India since Sep-2009. 3) Consolidated EPF (>5 lakhs) was withdrawn in Feb-2016 on which a TDS of 10% was made. This amount is reflect in Form 26AS for FY 2015-16. 4) There was also some small amount (approx. 4% of EPF corpus) that is withdrawn but there was no TDS on this amount. I believe this is either Pension or Gratuity. Given the service length of 5 years, I believe this withdrawal of EPF is completely exempt from Income Tax. If this is true then please advise how can I file IT returns for this amount and how should I fill this up in ITR1 and claim back the TDS amount. Many Thanks Amit
Dear Abhishek, Thanks for your timely response. I am using "Prepare and Submit online ITR" utility on incometaxindiaefiling.co.in website to fill up the ITR1 form and file my return. I believe exempt income in ITR1 is on "Income and Deduction" column under the "Income Details" section. Please can you confirm the box number where to fill this EPF and Pension amount as exempt income. Many Thanks Amit
Hello Sir,
Yes, you are correct. EPF Withdrawn after a continous service of 5 years is exempt from Tax.
Trust this clarifies your query.
Feel free to call back/ get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Hello Sir,
I feel there is no exempt income tab in ITR-1, I feel to show the exempt income you need to file ITR - 2 or 2A.
Trust this clarifies your query.
Feel free to call back/ get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Hi, ITR-1 has exempt income tab. It is field D20 under "Taxes Paid" column in "Taxes Paid and Verification" tab of "Prepare and Submit online ITR" utility on incometaxindiaefiling.co.in website. I believe this will do? Cheers Rahul
Dear Amit,
Please use quick while ITR option, it's more easy.
I personally have never used prepare and submit ITR for ITR 1. Hence, I need to check where this field appears.
If it is there..you can put the amount there..no problem.
Just check after punching the amount in that column, your total income should not change
Sorry i think your question is already answered by my professional colleague
Dear Rahul,
If it is there then you can go ahead.
Trust this clarifies your query.
Feel free to call back/ get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.