NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Mukesh Ambani
    WhatsApp
    Reliance Jio
    OPPO
    Vivo
    Sensex
    Bitcoin
    NewsBytes
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / Did you know interest on PF post employment is taxable?
    Business

    Did you know interest on PF post employment is taxable?

    Did you know interest on PF post employment is taxable?
    Written by Gogona Saikia
    Nov 16, 2017, 02:57 pm 2 min read
    Did you know interest on PF post employment is taxable?

    Whether you have resigned, retired or were fired, interest on your provident fund account is taxable in the year of credit after employment. The Bengaluru bench of the ITAT recently upheld this provision while hearing the case of a retired employee. Apparently, not many know of this clause; people don't submit the interest earnings on PF account for taxation and have to face consequences.

    The mechanics of the PF account in numbers

    Most salaried employees contribute 12% a month to their PF account. The employer matches the amount. The total sum then compounds at a fixed rate as decided by the EPFO every year; currently it is 8.65% per annum. Under Section 80C, contributions of up to Rs. 1.5L to your PF account qualify for tax deduction.

    What are the current laws on PF accounts?

    An employee's PF account continues to be operational even after employment and keeps earning interest until it is withdrawn, or they take up another job. For retired employees aged over 55, the account turns inoperative three years post-retirement but will keep earning interest. The balance at cessation of service is exempt from taxation subject to conditions, but "any accreditation (post employment) is taxable".

    What happened in the Bengaluru man's case?

    The recent ITAT hearing was about a man who retired from a Bengaluru-based company in 2002 after 26 years of service. His PF balance then was Rs. 37.93L. In 2011, he withdrew the accumulated sum of Rs. 82L that included Rs. 44.07L interest. However, not knowing the laws, he didn't submit this amount for taxation. When I-T questioned him, he took it the ITAT.

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Latest
    Bengaluru
    Employment
    Employees Provident Fund Organization (EPFO)

    Latest

    Nat Sciver-Brunt registers best batting average of WPL 2023: Stats Women's Premier League (WPL)
    Citroen to MG Motor: Top EVs under Rs. 25 lakh Electric Vehicles in India
    WPL 2023: Presenting the list of award winners Women's Premier League (WPL)
    IPL 2023: Here is the statistical preview of Punjab Kings Punjab Kings (PBKS)

    Bengaluru

    Bengaluru: PM Modi inaugurates new Metro line, takes 1st ride  Karnataka
    Kannada actor Chetan Kumar arrested over objectionable 'Hindutva' tweet Kannada Films
    IMD predicts more rain for Delhi; Mumbai to get warmer India Meteorological Department (IMD)
    Accidents, jams on Bengaluru-Mysuru Expressway inaugurated last week: Know why Karnataka

    Employment

    IIT Kanpur: 33 job offers of Rs. 1 crore made JEE Mains
    Urban unemployment rate dropped in July-September 2022: NSO report Lockdown
    Indians no longer need police clearance certificate for Saudi visa Saudi Arabia
    Immigrants constitute quarter of Canada's population; largest proportion from India Canada

    Employees Provident Fund Organization (EPFO)

    EPFO extends deadline for higher pension: How to apply Supreme Court Of India
    Amid pandemic, Rs. 21cr fraudulently withdrawn from Mumbai PF office Mumbai
    EPF-Aadhaar card linking now mandatory. How to do it? Aadhaar Card
    EPFO members allowed second advance withdrawal citing COVID-19 Coronavirus

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023