Process of disclosing Interest on PF in Income tax returm.

From FY 2021-22, salaried taxpayer whose contribution in PF more than Rs. 2.5 Lakhs requires to pay tax on the interest income on PF contribution exceeds Rs. 2.5 Lakhs per annum.  This interest income is taxable at applicable slab rate which in most cases will be 30% plus applicable surcharge & cess.

To comply with the captioned change your employer had taken the following steps.

·         Computed interest on which tax required to be deducted and the PF trust had deducted 10% TDS on that.

·         Include the interest income and TDS in your salary computation and deducted the balance TDS payable on the interest income

 

Following instructions to be followed while filing your income tax return.

·         The interest income shows as income from other source in Form 16. Include the same in the Interest table of Income from other source of Income tax return.

 

 

    

·         The TDS deducted by PF trust has can been seen as TDS deducted  on Income in the Income tax return. If not then must be appearing in Form 26AS and accordingly include the TDS in the below table of ITR.   

 

·         The captioned TDS amount will further automatically captured as Section 89 relief in the Table Part-B-  TT1.   Please make it Zero .  Please note that you are not required to file any Form 10E.

 

 

 

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