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I have finally withdrawn my entire PF amount three years after it became inactive and the agency managing the same on behalf of the Trust have deducted income tax @10% amounting to Rs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: EPF withdrawals post-retirement (age of 58 years) is completely tax-free till the date of retirement.
Subsequently, the interest on the EPF amount is taxable as per applicable income tax slab rates. TDS would also be deductible.