Keep these rules in mind while giving information on withdrawing money from FP to ITR
It is that time of year when everyone has started filing income tax returns. The government has made changes to many rules related to taxation and PF due to the Covid-19 pandemic. Due to the pandemic, many people have lost their jobs, many have suffered salary cuts and some have withdrawn money from the EPF fund. The money withdrawn from the government account has been exempt from tax, but it must be indicated when filing the EPF Income Tax Return (ITR). There are a lot of things to keep in mind when filing the RTI.
Due to Covid-19, many employees suffered payroll deductions or, in some cases, monthly pay was postponed. Often, employees don’t worry about paying taxes because the company usually reports it. But if the company pays less tax in the event that wages have been deferred, then the employees might have to face the problem. In such a situation, you need to complete the tax after assessing the salary, in order to avoid the penalties of the tax department.
The government had granted numerous exemptions to withdraw money from the EPF fund. The government had granted this exemption to provide financial relief to people facing problems in the Covid-19 pandemic. The money withdrawn from the EPF fund has been freed from tax, but people still need to report this when filing the RTI.
Large numbers of employees are working from home during Covid-19. If the employee was paid by the company for furniture or other fixtures, this will be within the scope of the tax because the companies do not deduct TDS on these payments.
The government has zero-rated the financial aid received for the treatment of Covid-19 etc. But you must show it in the exemption section when filing the RTI for this exercise.