-I worked with a software company for 9 years 10 months and then moved to Canada as a permanent resident and have settled there. Now, I want to withdraw full EPF amount. But EPFO says I can’t withdraw the full amount as it is over 9.5years of service. How can I withdraw the full amount?
– Dhiraj Prasad
According to the EPF Act, to claim final PF settlement, one has to retire from service after attaining 58 years of age or should have been out of job for straight 60 days. In your case, since you have resigned from your job before you turned 58 years of age, you are eligible to withdraw the full PF balance if you have been out of employment for 60 straight days (two months) or more after leaving the job with the software company. However, the form for withdrawal is different if either you have not completed 10 years of service or have completed 10 years of service but have not attained the age of 50.
I purchased a shop for Rs 36.7 lakh in October 2011 inclusive of stamp duty. I sold it for Rs 1.05 crore in 2017. I have invested Rs 50 lakh in Section 54EC bonds. Indexed cost of purchase is around Rs 54 lakh. Additionally, I have interest income of Rs 1.5 lakh. Is it mandatory to disclose assets and liabilities (A&L) while filing returns?
For computation of Long Term Capital Gains (LTCG), indexed cost of acquisition, indexed cost of improvement and expenditure incurred wholly and exclusively in connection with transfer (like brokerage, commission, advertisement, expenses, etc.) are subtracted from the sale consideration. The capital gains so computed are then charged to tax at applicable rates (presently 20%). Section 54EC provides that if an assessee invests the LTCG within a period of six months from the date of transfer in specified assets, being bonds of NHAI/RECL, then the amount of capital gains so invested shall be exempt from tax. Thus, your income under head capital gains comes out to be `1,00,000, provided you have invested under the scheme of 54EC within the prescribed time limits. The I-T Act requires that all assets should be disclosed by the taxpayer in his Income Tax Return provided that total income after tax saving deductions is over `50 lakh. Since total income liable to tax is less than `50 lakh in your case, A&L disclosure shall not be required.
The writer is partner, Nangia & Co LLP. Send your queries to firstname.lastname@example.org