.......I quit previous employer after 4 years of service, and didn't get PF account transferred. It remained idle for 3 years and then I withdrew it last year (7 years completed of PF account) by providing details in the respected forms which are Form 19 (Revised), Form 10C, Form 15G (Manual filled 2 copies), Pan card and Cancelled Cheque. When I am filing ITR1, I can see 10% tax was deducted and it is showing under Tax from other income. Below are the questions: Q: Why tax is deducted in first place? Q: Now if I add pf amount as other income, it is falling in 30% slab; hence, additional 20% liability is coming. Why I should pay 30% tax on the PF amount which was accumulated during early years where full income was under 10% slab?
Jan. 04, 2018