...I have received Rs. 363538 as my PF money in April, 2015. Employer contribution is Rs. 167920 an…
...I have received Rs. 363538 as my PF money in April, 2015. Employer contribution is Rs. 167920 and Employee contribution is Rs. 167920. Interest earned is Rs.27698 (half of it for both). Employee contribution has taken tax relief under 80c in respective years. I have no other income in the FY in which I have received this sum. I went to a CA for tax calculation. He calculated tax relief I got in respective years due to employee contribution and termed it tax to be paid, then he went straight to calculate benefit due to 89(1). Is 89(1) applicable here as I have no other income in this FY? Where did the tax liability due to employer contribution go? Is it because employer contribution and interest is less than minimum taxable income (Rs.2,50,000)? I kept asking him but he was unable to convince me, he kept on saying the amount will be considered in the present FY. Also, which fines would I attract since I am paying late tax?