[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (ii)] GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE [CENTRAL BOARD OF DIRECT TAXES] INCOME-TAX Notification New Delhi, the 17th August, 2015 S.O. 2240(E).- In exercise of the powers conferred by Explanation 2 to clause (1) of section 6 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:- 1. (1) These rules may be called the Income-tax (Twelfth Amendment) Rules, 2015. (2) They shall come into force with retrospective effect from the 1st day of April, 2015. 2. In the Income-tax Rules, 1962, in Part XV, after rule 125, the following rule shall be inserted, namely:- `126. Computation of period of stay in India in certain cases. - (1). For the purposes of clause (1) of section 6, in case of an individual, being a citizen of India and a member of the crew of a ship, the period or periods of stay in India shall, in respect of an eligible voyage, not include the period computed in accordance with sub-rule (2). (2). The period referred to in sub-rule (1) shall be the period beginning on the date entered into the Continuous Discharge Certificate in respect of joining the ship by the said individual for the eligible voyage and ending on the date entered into the Continuous Discharge Certificate in respect of signing off by that individual from the ship in respect of such voyage. Explanation: For the purposes of this rule,- (a) "Continuous Discharge Certificate" shall have the meaning assigned to it in the Merchant Shipping (Continuous Discharge Certificate-cum- Seafarer's Identity Document) Rules, 2001 made under the Merchant Shipping Act, 1958 (44 of 1958); (b) "eligible voyage" shall mean a voyage undertaken by a ship engaged in the carriage of passengers or freight in international traffic where- (i) for the voyage having originated from any port in India, has as its destination any port outside India; and (ii) for the voyage having originated from any port outside India, has as its destination any port in India.'. Invitation for empanelment as Examiners for Chartered... »
Tax rate on PF withdrawal based on account holders income August, 20th 2015I completed four years and 11 months with my employer (joined on 25 June 2010 and left my job on 21 May 2015). I wanted to know if I will be taxed when I withdraw money from my provident fund (PF) account. Is there a way to avoid this deduction? I am not working anywhere at the moment. Can I continue the same PF account with my new employer?The withdrawal of the accumulated balance from a recognized PF is taxable if the employee has not rendered continuous services for five years or more to the employer. While computing the continuous service of five years, the period of previous employment is also included, if the accumulated balance maintained with the old employer is transferred to the PF account of the new employer.We understand that you have rendered service for four years and 11 months.Assuming that this was your first job or you have not transferred the PF balance, if any, from the previous employer, if you withdraw from your PF, it shall be taxable in the year of receipt.
The total of employer's contribution plus interest thereon will be taxed as salary. Further, the amount of tax benefit claimed under section 80C of the Income-tax Act, 1961, on account of your contribution to the recognized PF shall also be taxed as salary. Also, the interest on your own contribution shall be taxed as "Income from other sources". The tax rate would depend upon your applicable income slab in each of the financial year(s) during which the PF contributions were made.Apart from these, the surcharge and cess, as applicable, for each of the years of receiving tax benefit will also be payable in addition to the basic income tax.In your case, since the PF contribution is spread over different FYs, tax rates of those years would have to be considered.You would be entitled to avail relief under section 89.In your case, if the PF amount is withdrawn, the same would be taxable (presuming that your employer maintains PF with a recognized PF).
Tax will be deducted at source (TDS) at 10% if the PF amount is more than Rs.30,000 and you give your Permanent Account Number (PAN). If you do not provide your PAN, then tax would be deducted at the maximum marginal rate.If your employer has a private PF trust, TDS will be as per the relevant rules.Do note that withdrawal of PF will be as per the PF provisions, which require you to have a non-employment period of two months after leaving your job.[Notification No. 70/2015/ F.No.142 /12/2015-TPL] (Amit Katoch) Under Secretary (Tax Policy and Legislation) Note. - The principal rules were published vide notification S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification S.O. 2155(E), dated the 7th August, 2015.
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