CSD AFD Price List

  • Home
  • 5G Mobile
You are here: Home / Income Tax / No Tax Relief on EPF Interest if not Employed: ITAT
CSD AFD Online Portal Login 2023
CSD All Branded Items Price List 2023
CSD New Indent Form for Purchase of Car 2023

How to Apply for CSD AFD Online Portal Website
CSD AFD Electronics Price List 2023 PDF
CSD Canteen Car and Bike Price 2023

No Tax Relief on EPF Interest if not Employed: ITAT

November 19, 2017 Leave a Comment

No tax relief on EPF interest if not employed: ITAT

MUMBAI: Tax laws provide that interest credited to an employee provident fund (EPF) account after an individual ceases to be in employment is taxable in his hands in the year of credit.

In its recent order, the Bengaluru bench of the Income-Tax Appellate Tribunal (ITAT) also upheld this I-T provision while adjudicating the matter of a retired employee.

Post-employment, whether on account of termination, resignation or retirement, several employees continue to maintain their EPF accounts and earn interest on the same. Unfortunately, they are usually not aware of the tax implications on the interest accretion in the fund after termination of employment,” says Amarpal Chadha, partner and India mobility leader at EY India. Investment consultants point out that even in the case heard by ITAT, the taxpayer had mistakenly thought that the interest which had accrued to his EPF account post his retirement was not taxable.

This recent ITAT ruling is pertinent not only for retired employees, but also those who have quit employment for various reasons, say, to be an entrepreneur or a homemaker, and have continued to retain a balance in their EPF accounts.

According to a notification issued last November, when an employee resigns from his job or his services are terminated, his EPF account continues to be “operative” and earns an interest until he applies for withdrawal of the accumulated balance or takes up another job and transfers the balance. On the other hand, interest accrual norms are different for a retired employee. If an employee retires after 55 years of age and does not apply for withdrawal from his EPF account or transfer of the balance, then post three years from the date of retirement, his EPF account is treated as “inoperative” and does not earn any interest.

The applicable rate of interest is announced each year. For the recently concluded financial year 2016-17, the interest rate was 8.65% and rates for the current financial year are expected to be announced shortly. In the recent case, the man had retired from a prominent Bengaluru-headquartered software company after 26 years of service, on April 1, 2002, and the total amount in his EPF account then was Rs 37.93 lakh.

Nine years later, on April 11, 2011, he withdrew the grown sum of Rs 82 lakh from his EPF account. This amount included interest of Rs 44.07 lakh that had accrued post his retirement till the date of withdrawal.

The retired employee did not offer this interest amount to tax, as he viewed it would be exempt under Section 10 (12) of the I-T Act. During assessment proceedings for financial year 2011-12, the I-T officer sought to levy tax on this amount and the litigation finally reached ITAT’s doors.

Source: ET

Related posts:
  1. Interest Rate of and House Building Advance
  2. Rules for PPF Withdrawals, Loans and Premature Closure | Public Provident Fund
  3. Indian Postal : Finacle : Closing Saving Account if Loan Exists in RD
  4. Provident Fund – General Provident Fund (Tamil Nadu) – Rate of interest 7.8% for the financial year 2017-2018 – Orders
  5. 7th Pay Commission : House Building Advance (HBA) Rules for Central Government Employees (Maximum of Rs. 25 lakhs)
  6. 16 years After Indira Vikas Patra was Scrubbed, ‘outstanding’ Amount worth over Rs 800 crore Revealed
  7. Revision of Interest Rates for Small Savings – for 3rd Quarter of Financial Year 2017-2018
  8. Removal of Ambiguity in Fixation of pay of Re-employed Exservicemen – NCJCM
  9. Provident Fund – Rate of Interest During the year 2017-18

Filed Under: Income Tax Tagged With: EPF, Income Tax

Leave a Reply

Your email address will not be published. Required fields are marked *

CSD AFD Important Link

How to Apply CSD AFD Online Portal
CSD AFD Online Shopping Portal
CSD AFD Online Registration
CSD AFD Login Page
CSD AFD User Guide
CSD AFD Official website
Forget Password and Reset Process
AFD Portal Terms and Conditions
AFD CSD Helpline Number

Holidays 2023

State Wise Holidays List 2023

West Bengal Holidays 2023
Tamil Nadu Holidays 2023
Andhra Pradesh Holidays 2023
Sikkim Holidays 2023
Punjab Holidays 2023
Puducherry Holidays 2023
Uttar Pradesh (UP) Holidays 2023
Odisha Holidays 2023
Mizoram Holidays 2023
Manipur Holidays 2023
Madhya Pradesh Holidays 2023
Lakshadweep Holidays 2023
Jammu & Kashmir (JK) Holidays 2023
Kerala Holidays 2023
Karnataka Holidays 2023
Himachal Pradesh Holidays 2023
Haryana Holidays 2023
Gujarat Holidays 2023
Goa Holidays 2023
Delhi Holidays 2023
Chhattisgarh Holidays 2023
Chandigarh Holidays 2023
Bihar Holidays 2023
Assam Holidays 2023
Arunachal Pradesh (AP) Holidays 2023
Meghalaya Holidays 2023

Popular Post

CSD All Branded Item Price List 2023 – CAR, BIKE, AC, W/M, TV

CSD Car Online Price List 2023 PDF

CSD Bike Price List 2023 PDF

CSD Electronics Price List 2023

CSD Samsung Mobile Price
CSD Whirlpool Price List
CSD Panasonic Price
CSD IFB Price List
CSD Samsung Price List
CSD Voltas AC Price List
CSD Hitachi AC Price
CSD Blue Star Price List

Copyright © 2024 - 7thcpcorders.in