CBDT today clarified that the exemption from filing of income tax returns given to salaried person earning upto Rs.5 lakhs was only for assessment year 2011-12 and 2012-13. This exemption was given due to complexity of e filing facing by taxpayers as well as by tax officers in processing through manual entry on system.
Withdrawal of Provident Fund may attract Income Tax. The Income Tax Department recently told EPFO (Employees Provident Fund Organisation) to deduct Tax (TDS) from the withdrawal amount, if the withdrawal happened before completing five years of subscription. Tax officials have cited a rule in the 1961 Income-Tax Act that taxes PF withdrawals by employees before completing five years of contributions into the EPF is taxable.
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Tarun Kumar Gupta
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