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AuthorQuestion Title
Raghu
Mumbai
EPF Withdrawal Tax consideration and Entry in ITR 2

I am an NRI for the last few years and recently quit my Indian Company last Financial year after 16
years of continuous Service. My company and me have been contributing the requisite amounts as per
law to the EPF account till resignation.I have not made any voluntary additional contributions to
the EPF. I applied for withdrawal of EPF lumpsum with the reason of "Permanent Migration From
India". My company has not charged any TDS on the withdrawn TDS amounting to 18 lakh except on
interest for the 3 month period after I left the organisation. I am aware that the interest for the
period after leaving the organisation is taxable under "Income from other sources" and
hence have no problem with that. I have the following queries: 1) Is tax applicable on the
Employee contribution and its interest for the 16 years of EPF accrual during employment. If yes,
how and where do I declare that in the current Assessment Year in ITR 2? 2) Under the Exempted
allowance of Section 10 (12) should I declare the entire withdrawn amount of 18 lakh, OR only the
employer contribution, employee interest and employer interest accrued over the last 16 years OR
some other combination? 3) How should I compute the above considering in the settlement letter my
company has only given 2 values: One for Employee contribution and interest and the second for
Employer contribution and interest. 4) Should I be declaring any other amount in ITR 2 with respect
to my EPF withdrawal?


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