Income Tax on Interest
I'd like to know more about the recent news items about income tax liability on interest received in one's account after contributions have ceased. My understanding is that PF can be kept for 3 years after one retires and contributions stop. At the end of 3 years, the entire corpus including the interest paid on the last 3 years can withdraw the corpus tax free.
What is the correct legal position? more
What is the correct legal position? more
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No Sir.I read a recent post in news paper stating that the interest earned during that 3 years is taxable.RegardsFrom: "Shantanu Das Gupta" Sent: Sun, 26 Nov 2017 08:37:35To: hemantkk2@rediffmail.comSubject: "Income Tax on Interest" more
Dec 01
Read in newspapers that interest on EPF shall be levied after employee resigned or retired. It seems it is as per a tribunal award. Hope some seniors in legal affairs can throw light on this point. more
Nov 28
There is no tax if accumulated balance in a PF account is withdrawn after retirement as per pf regulations either on corpus or on interest part. Tax arises only if withdrawal is done from NPS schemes either after closure of the account or on opting out of the pension scheme and that too on 60% of the total amount payable and the tax rate will be as per applicable slabs and basic exemption of RS.2.50 lacs. The recent circular has got to do with pension scheme part of withdrawal only. more
Nov 27
As per my experience and understanding whatever comes out of PFO is nontaxable. After that whatever it earns elsewhere becomes taxable. more
Nov 26
I am responding to your query based on my recent experience with regional EP office in Bangalore. While withdrawing entire amount after my retirement recently, I was informed that a. There is no tax on interest if the total amount withdrawn does not exceed more than 2.5 lakh b. Tax on interest was not levied till 2015/2016. c. As per recent rule, minimum of 10% of the total amount will be deducted as TDS and it will be reflected in Form 26AS (can be viewed in IT website if one has registered with it) d. If one is not liable to file IT return, he/she can file Form 15G/15H form more
Nov 26
Dear Sir, As per my information if your account is more than 5 years post last contribution or if you retire from salaried job then total amount including the interest earned is TAX free. Therefore there should be no tax liability at all. If you have not withdrawn the amount from PF account but getting interest then also no TAX to be paid. more
Nov 26
