Money Withdrawal from PF Fund should be mentioned in the ITR Filed

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Money Withdrawal from PF Fund should be mentioned in the ITR Filed

In the event that you have withdrawn money from the Employees Provident Fund (EPFO) during the monetary year 2019-20 to manage any financial crisis in the midst of the Covid pandemic, at that point you will have to inform the taxman while filing your income tax return.

Experts say that information related to money withdrawal from PF should be mentioned in the ITR filed. There is a provision for withdrawal on finishing five years of continuous service of the employee. However, in the event that they pull out their PF before the time of five years, at that point they need to pay tax as per the standards under the income tax law.

The government has permitted individuals to withdraw from PF in the wake of the Covid pandemic. Employees can withdraw up to 75% of their account or three months basic salary and dearness allowance, whichever is less. For instance, in the event that you have an outstanding of Rs 100,000 in your PF account and your basic salary and dearness allowance is an aggregate of Rs 20,000 every month, at that point, you will be eligible to withdraw up to Rs 60,000.

According to government orders, an employee can withdraw money under the pandemic relief regardless of whether they have not finished five years of service. However, specialists suggest that the data about the money withdrawn must be given at the time of filing the income tax return as there can be a mismatch if the Income Tax office examines the taxpayer’s account.

This year, the ITR return form has a special section for including data about PF withdrawal. This implies that it is within the extent of exemption however it is as yet important to show it. There is no penalty of any kind on this amount. Under Section 80C of the Income Tax act, a tax deduction of Rs 150,000 for every annum is given in PF.

For more information, visit the website of All India ITR

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