Income Tax: You cannot claim refund of tax on gratuity already availed

By: | Published: April 4, 2018 1:46 AM

The part of employee’s own contribution shall be taxed to the extent deduction for the same is availed u/s 80C of the Income-tax Act, 1961 in the past years and the balance shall be exempt from tax.

tax on gratuity, income taxInterest on the employee’s contribution will be taxed as “other income”.

* I retired in September 2016 from a public sector organisation. My gratuity was more than Rs 20 lakh. My income tax was deducted on my gratuity with the exemption limit of Rs 10 lakh. Since then the central government has increased the limit to Rs 20 lakh. Am I eligible for the refund of income tax paid by me?

—Sanjeev

This exemption provision has been passed under The Payment of Gratuity (Amendment) Act, 2018 which has a prospective effect and will not be available for gratuity already received by you. Hence, you are not eligible to claim any refund of income tax paid by you as per applicable laws which was in force at that time.

* I had worked in a company from August 2012 to May 2015. I had withdrawn the accumulated PF amount in February 2018 and TDS has been deducted. Please advice me on the tax implications.

—Chandra Shekar B

Since you have rendered service for less than five years and assuming that you have not continued your PF account with any other employer, payment received by you in respect of the employer’s contribution along with the interest accrual thereon will be taxed as “salary”. Interest on the employee’s contribution will be taxed as “other income”. The part of employee’s own contribution shall be taxed to the extent deduction for the same is availed u/s 80C of the Income-tax Act, 1961 in the past years and the balance shall be exempt from tax.

* I joined a company in 2012 and left after serving for two and a half years. I did not transfer or withdraw my PF amount. Now I have two UAN. How do I link the two accounts?

—Anirudh Mishra

You can get the multiple UANs linked going through member portal of the website of EPF India, i.e., https://unifiedportal-mem.epfindia.gov.in/memberinterface/ and can login through the present UAN. There, on the main menu, click on the option ‘Our Services’ and then go to the option of ‘One Employee-One EPF Account’. Therein you can put the required details and can link these. However, if you still find any difficulty, you can get this done manually through filling and submitting Form 13 which you can get signed from present employer as well.

The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to fepersonalfinance@expressindia.com

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