In below post you have mentioned interest earned on epf balance(employee + employer’s contribution) is taxable for Recognized PF category organization.
Currently I have found that upto 9.5% is tax exempted & above that amount it is taxable on interest earned on epf.
I have below mentioned queries related to this –
1. Currently I’m working with an MNC in IT industry.Will it be considered as Recognized PF category ?
2. Is this tax applicable only when full amount is withdrawn from EPF after retirement or every year do I have show it
in my ITR as ‘Income from Other Sources’ & pay tax on that amount ?
3. Lets assume for FY2018-19 till March,2019 my epf balance was 10000 and Interest credited by epf is 1000 based on that years epf interest rate.
Now if I calculate 9.5% p.a. interest on epf balance 10000 it will be 950.
But since interest credited by epf is 1000 which greater than 9.5% interest rate then the remaining 50(=1000-950) will be taxable.
So I have to mention that 50 as Income from Other sources while filing ITR for FY2018-19 and pay tax on that 50 rupees as per my tax bracket.
Am I correct ?
4. Sometime I have seen EPFO will credit interest not on march month of finacial year.Rather they will credit the interest on june-july.
How to show interest income in that case while filing ITR ? Will it be current financial year or next financial year ?
Thanks in advance.