I am a senior citizen and have been filing my IT return since 1984 regularly. I moved to the corporate and retired at the age of 58, with cessation of contribution of PF from 01 Apr 2019. Thereafter, I continued with my company as a consultant, ceasing employment Dec 2020 without any PF contribution and the PF amount continued in the Trust for three years till 31 Mar 2022.

I have finally withdrawn my entire PF amount three years after it became inactive and the agency managing the same on behalf of the Trust have deducted income tax @10% amounting to Rs 105,892 and paid the balance. Please let me know, if:

Do I have to pay the TDS?

If yes, how much income will I have to show when I file my ITR next year?

Ans: Since, you have worked for more than 5 years in the organisation, there is no tax on PF interest upto the period you were employed.Interest on PF is taxable after this period.

Ans: Any payment from a provident fund is exempt u/s 10(11). However, as Interest is earned after retirement and in the absence of specific provision, it can be subject to litigation.

Ans: You need to declare all the income, but some are taxable and some are not
1) Pension received is taxable
2) PF received is not taxable if service is more than 5yrs
3) Gratuity is exempt up to 20L
4) For government employees - commutation is not taxable
5) For government employees leave encashment on retirement is not taxable

Ans: Respected Sir,

you may file either ITR- 1 or ITR-2 depending on the complexity of the income. Yes, the lock in period of 3 years applies on ELSS schemes and if withdrawn before that it would attract taxability. Please look at the below a detailed note, which would be helpful to you. Withdrawal from Tax Saver Mutual Fund: If you made a withdrawal of Rs. 65,000 from your tax saver mutual fund, it's important to note that withdrawals from equity-linked saving schemes (ELSS) are subject to tax implications.

- ELSS investments have a lock-in period of three years. Withdrawals made before the completion of the lock-in period are considered as short-term capital gains.

ITR Form: Since you are a teacher by profession, your income is likely from salary and other sources. If you do not have any business income, you would typically file your income tax return using ITR-1 (Sahaj) or ITR-2, depending on the complexity of your income sources.

ITR-1 (Sahaj): For individuals having income from salary, one house property, other sources (like interest income), and total income up to Rs. 50 lakh.
ITR-2: For individuals and Hindu Undivided Families (HUFs) not eligible to file ITR-1 and having income from salary, house property, capital gains, and more than one house property, etc.

Ans: Form : ITR 2
Income head : Capital gains
Tax liability depends upon your other income sources. If only this is the amount of income then no tax liability.

Please consult with your CA as well on this.