PF received on superannuation from recognised trust

Income Tax
1

I superannuated from a PSU having own recognised PF trust in Feb2020 after 35 yrs of service.However the PF accumulations were withdrawn after 3yrs in feb 2023. The trust has deducted TDS on interest u/s194a. Please confirm whether

  1. I can claim exemption u/s10(12) for interest component?
  2. Whether i should report PF accumulation withdrawal in ITR2? If yes then how the same is to be reported? In schedule EI?
2

Hi @A_K_Lalla

As per Section 10(12), interest on the contribution made by the employee to the ‘Recognized Provident Fund’ is exempted, provided contribution made by the employee does not exceed ₹5,00,000 in any previous year in that fund. In case your employer is also participating in the contribution the limit is ₹2,50,000.

Since TDS is deducted on the interest part, interest is taxable.

You should report the PF withdrawal under Schedule EI under section 10(12)

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3

Thanks for the clarification.