Section 111: Tax on Accumulated Balance of Recognised Provident Fund
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Section 111 of Income Tax Act, 1961 amended by Income tax rules and Finance Act 2022 outlines the tax implications for the accumulated balance in a recognized provident fund based on whether it is included in the employee’s total income or becomes payable in the future. The specific calculations are determined by the rules mentioned in the Income Tax Rules.
Section 111 of Income Tax Act 1961
- 111. (1). Where the accumulated balance due to an employee participating in a recognised provident fund is included in his total income, owing to the provisions of rule 8 of Part A of the Fourth Schedule not being applicable, the Assessing Officer shall calculate the total of the various sums of tax in accordance with the provisions of sub-rule (1) of rule 9 thereof.
- 111. (2). Where the accumulated balance due to an employee participating in a recognised provident fund which is not included in his total income under the provisions of rule 8 of Part A of the Fourth Schedule becomes payable, super-tax shall be calculated in the manner provided in sub-rule (2) of rule 9 thereof.
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1 Comment
I have resigned at age 56 in October 2016. Now I am retired but didn’t withdraw PF money which is crediting interest every year till 36 months. My PF interst income(Emp + Self) is 8L plus. Do I need to show interst and pay tax in ITR or I can pay tax at time of withdraw. I need help since there is no salary income and earning on interest, divident and capital gain from my saving corpus.
Should I show as this year PF interest as Other Sources on accrual basis. It may help to bring down overall tax this and next year. If I want to show , How do I show in ITR. There is mention of PF income under section 111.