Prajna Capital

Provident Fund Premature Withdrawal
INCOME OF Previous JOB and IT Returns
SBI FMCG Fund

Posted: 22 Jun 2016 03:52 AM PDT

Provident Fund Premature Withdrawal

Every month salaried employees keep on depositing small part of money in provident fund. Normally it is advised that best use of PF money is post retirement and it should be withdrawn only after the retirement. But if you are stuck in some family emergencies or need money on an urgent basis then withdrawal of provident fund money before maturity can be done. Here are few scenarios when you can withdraw PF money before maturity and conditions under which you can withdraw:

Education or marriage
Buying land
Building flat or house
Repayment of home loan
Medical emergencies

Conditions for Early Withdrawal for Education or Marriage:

Minimum 7 years of employment is over
Marriage of your siblings – for this you need to provide verification documents such as marriage card
For verifying education of your kids you need to provide education fees document

HOW MUCH MONEY YOU CAN WITHDRAW:

Only half of the provident fund money can be available during the withdrawal date can be taken out
Only 3 times during your whole employment, money can be withdrawn

Conditions for Buying Plot Using PF Money:

Minimum 5 years of employment is over
The plot which you are going to buy should be on your name or your partner's name or must be jointly registered

WITHDRAWAL LIMIT:

You can withdraw 24 times of your monthly salary at the time of withdrawal.
Only 1 time during your employment you can withdraw the money before maturity

Conditions of Withdrawing for Flat / House:

Conditions are similar as mentioned above for buying plot

WITHDRAWAL LIMIT:

You can withdraw 36 times of your monthly salary at the time of withdrawal.
Only 1 time during your employment you can withdraw this money before maturity

Conditions for Using Provident Fund Money for Repayment of Home Loan:

Minimum 5 years of employment is over
The plot which you are going to repay home loan; that flat or house should be on your name or your partner's name or must be jointly registered

WITHDRAWAL LIMIT:

Limits and conditions are similar to that applied for flat or house as mentioned above

Withdrawing PF Money for Medical Expenses:

For expenses of you, your partner/children/parents
No minimum employment year limit
Proof of hospitalization or leaves taken during that period should be submitted
ESI – the certificate given by your employer which states that employee is not receiving benefits of ESI must be given as a proof

WITHDRAWAL LIMIT:

6 times of your monthly salary and total money deposited in the PF whichever is lower of these two can be withdrawn
You can withdraw the money before maturity unlimited times

IS PREMATURELY WITHDRAWN PROVIDENT FUND MONEY TAXABLE?

Yes, it is taxable provided money is withdrawn within 5 years of your employment. If money is withdrawn after 5 years of employment then it is not taxable.

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

Leave a missed Call on 94 8300 8300

INCOME OF Previous JOB and IT Returns

Posted: 21 Jun 2016 10:49 PM PDT

EVERY TIME an individual switches jobs, he is in danger of falling foul of the tax laws. This is because the new employer doesn't take into account the income earned from the previous job and offers tax exemption and deduction to the employee all over again. Instead of `2.5 lakh basic exemption and `1.5 lakh deduction for tax saving investments under Section 80C, he gets `5 lakh basic exemption and `3 lakh deduction. Obviously, he will be paying much less tax than he ought to.

But this discrepancy won't remain hidden for long and would eventually be discovered when the tax payer files his return. The incomes in the two Form 16s would be added but he would get basic exemption and deduction only once.This also means a large tax payment at the time of filing returns because the duplicate benefits would be rolled back. The last date for paying the tax is 15 March. After this, if the unpaid tax exceeds `10,000, there is a penal interest of 1% per month of delay. The employee will have to pay the balance tax along with interest at the rate of 1% per month for delay.

This is a common problem faced by people who switch jobs without keeping an eye on their taxes. They are saddled with a huge tax liability when they sit down to file their tax returns in June-July.

Don't think you can get away by not mentioning the income from the previous employer in your return. If some tax has been deducted on the income from the first employer, it will be reflected in your Form 26AS. So if you don't report that income, the discrepancy will immediately get picked up by the computerised scrutiny system and you will get a tax notice.

Inform your new employer about income from previous job so that the TDS is cut accordingly.

-----------------------------------------------

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds
Top 10 Tax Saver Mutual Funds to invest in India for 2016
Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online
Invest Online
Download Application Forms
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
---------------------------------------------
Leave your comment with mail ID and we will answer them
OR
You can write to us at
PrajnaCapital [at] Gmail [dot] Com
OR
Leave a missed Call on 94 8300 8300

-----------------------------------------------