[Resolved]  Reliance Communications Pf Trust Fund — Deduction of Tax on PF

I was laid of by Reliance communication in may after working with them for 5 years and 9 months. I submitted my application for PF withdrawal and they claim that it is taxable. They have quoted "2) Sub rule 1 of part 9 of Schedule IV of Income Tax Act.1961. as the reason for the same.

Please clarify

1) Read Sec. 111 of Income Tax Act 1961.
Tax on accumulated balance of recognised Provident Fund.

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 Office shall calculate the total of the various sums of Tax in accordance with the provisions of sub-rule (1) of rule 9 thereof."

(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."

2) Sub rule 1 of part 9 of Schedule IV of Income Tax Act.1961.
Tax on accumulated balance.

9.(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 not being applicable, the Assessing Officer shall calculate the total of the various sums of Tax which would have been payable by the employee in respect of his total income for each of the years concerned if the fund had not been a recognised provident fund, and the amount by which such total exceeds the total of all sums paid by or on behalf of such employee by way of tax for such years shall be payable by the employee in addition to any other Tax for which he may be liable for the previous year in which the accumulated balance due to him becomes payable."
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Aug 14, 2020
Complaint marked as Resolved 
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