Annual Information Statement (AIS) is a comprehensive statement covering details of all the Financial Transactions undertaken by the taxpayer. Principally, it is a tool that details the taxpayers about the information what the income tax department possess about them.
Notably, till now, Form 26AS has served as a consolidated annual tax statement. Form 26AS contained details like TDS; advance tax; self-assessment tax; high value transactions etc. Whereas, newly launched AIS includes many additional details like interests; dividends; foreign remittances; mutual fund transactions; securities etc. In nut-shell, AIS contains any information that is available with the Income Tax Department.
The information under AIS is classified into 50 categories. One such category is ‘Receipt of accumulated balance of PF from employer’. The present article contains a briefing on the said category.
Information source under AIS category of ‘Receipt of accumulated balance of PF from employer’-
The authorized person making payment of the accumulated balance of Employees’ Provident Fund is liable to deduct TDS as per provisions of section 192A of the Income Tax Act. Such TDS is to be deducted at the prescribed rates at the time of making payment of the accumulated balance due to the employee.
The authorized person who has to deduct TDS is also required to furnish the details while filing quarterly TDS return in Form 26Q. Concurrently, the authorized person will issue a TDS certificate in Form 16A to the employee whose TDS is deducted under section 192A.
Information furnished by the authorized person in Form 26Q will be taken up as the source for analyzing the category ‘Receipt of accumulated balance of PF from employer’ under AIS.
AIS processing of the category ‘Receipt of accumulated balance of PF from employer’-
Information obtained from the source, as stated above, will be processed by AIS in the following manner-
- The accumulated balance of PF on which TDS is deducted will be taxable in the hands of the recipient/ employee.
- The same will be reflected under the head ‘Income from other sources’ in AIS.
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In ITR1, Where to show “Receipt of accumulated balance of pf from employer u/s 111”.
No suitable option is appearing under Income from Other Sources or income from salary.
It is 3 years pf received due to job left for higher education abroad.