24 June 2008
I withdrawn Rs 10000 from PPF account in current FY. Now i wanted to deposit Say Rs 10000 in PPF in same FY. So what are the tax aspects? Few Questions are as follows: 1. Withdrawal of Rs 10000 is Taxable or Not? If yes, then Under which section? 2. Would i get deduction of deposit of Rs 10000 in PPF under Section 80C? 3. Latest Provisions related to PPF?
24 June 2008
Withdrawel will be exempted...Sec 10(11).Sec 10(25)....
to claim deduction, the investment should have been out of TAXABLE INCOME... so if you say that i have reinvested the money that i have got it from PPF....no deduction will be available... however you can invest in PPF and say that it is out of your salary income/other income.....
Deposit the PPF money in some other savings account inorder to avoid complication...
PPF....minimum lock in period is 15 years...and current int rate is 8.5%... at the time of withdrawel both the principal and int are exempted..
CAclubindia
