New PF taxation guidelines but to be prescribed

Is the PF tax proposal in Budget 2021 relevant to PF investments made up to now? Or are they relevant to contemporary investments made after April? Is the proposal relevant to the withdrawal of PF corpus? —Ravi We assume that the question is within the context of Employee Provident Fund (EPF) contributions. As per the modification proposed vide Budget 2021, curiosity accrued on contribution in extra of ₹2.5 lakh made by an worker to any EPF account for any monetary 12 months ranging from 1 April 2021 shall now be taxable. Please word the foundations governing the style and timing of computation of such taxable curiosity haven’t but been prescribed. As this modification is potential in nature, the identical would apply from 1 April 2021 onwards, i.e. curiosity on contemporary worker contributions made in extra of ₹2.5 lakh every year from 1 April onwards. While there may be ambiguity prevailing when it comes to timing of tax of such curiosity earnings, the prevailing provisions on taxation/exemption on withdrawal of EPF corpus haven’t been amended. I work within the software program business and have earnings from wage and curiosity on deposits, and many others. Occasionally, I write articles for historic historical past magazines and get some cost. Also, about 2-3 instances a 12 months, I take two-hour tutoring classes for software-related topics, for which additionally I get some cost. How ought to I present this earnings in my earnings tax returns? —A.B. As your major occupation and supply of earnings is employment and the earnings earned from writing articles and tutorial classes are from actions undertaken by you sometimes and never within the nature of standard enterprise or occupation, the identical might be thought-about as ‘income from other sources’. Further, any expenditure incurred wholly and solely for the aim of incomes such earnings might be claimed as a deduction towards your taxable earnings. However, if this continues on an ongoing and common foundation, then relying upon information and quantum/proportion of earnings, the identical might should be thought-about as earnings from enterprise or occupation. Assuming the earnings is classed as earnings from different sources, then relying in your different general sources of earnings, you would wish to file ITR-1 or ITR-2, and the earnings referred above would accordingly should be reported. In case ITR-2 is relevant, the main points of earnings would should be reported below merchandise 1(e) of Schedule OS. Further, particulars of deductions (if any) would should be reported below merchandise 3(ai) of Schedule OS. In case ITR-1 is relevant, the main points of earnings and deductions (if any) would should be reported below merchandise B3 of Part B of ITR-1 kind. Please word that the above are on the subject of tax return kinds pertaining to FY2019-20. Parizad Sirwalla is companion and head, international mobility companies, tax, KPMG in India. Queries and views at mintmoney@livemint.com Subscribe to Mint Newsletters * Enter a legitimate electronic mail * Thank you for subscribing to our e-newsletter.