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NITIN DAYALJI DAVDA (Querist)
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06 March 2014 PPF interest is tax free, but it has been stated that one must show it while filing income tax return, so under which section can I show it and how can I get tax relief on the interest earned from PPF account ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 March 2014 where is it written Nitin. please give the reference.

NITIN DAYALJI DAVDA

NITIN DAYALJI DAVDA (Querist)
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06 March 2014 It means that there is no need to show PPF interest while filing income tax return.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 March 2014 Nitin, I am asking where it is written. in your query you said, it has been stated that you need to reflect the same in ITR

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NITIN DAYALJI DAVDA

NITIN DAYALJI DAVDA (Querist)
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09 March 2014 Sirji, I have read it on a website providing tax related informations, I have forgotton the name of the website, but for your reference I would like to present the FAQs mentioned on the website, Interest Income
1. Is Interest earned on my Savings Bank account and Fixed Deposit taxable?
Yes. Saving Bank interest and Fixed Deposit- however small the amount is – is your income and is taxable. Many taxpayers, usually employees, tend to miss this income while filing income tax return.
From year 2012-2013, interest upto Rs 10,000/- is allowed as deduction .
Fixed Deposit / NSC
2. When do I declare interest from Fixed Deposit / National Saving Certificate( NSC) ?
There are 2 options to declare the interest:
1. At the time of maturity of the Fixed Deposit or
2. Every year, on the basis of accrual i.e., interest earned but not yet received
3. Am I required to also disclose tax-free income while filing my income tax return?
Yes, you are required to enter data of all income earned by you during the year. E.g. interest received from PPF though tax free, need to be shown in your income tax return.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 March 2014 ok...if you want to show the same, you may do so in sheet for exempt income. However, please note that there is no such sheet in ITR1. Therefore, it cannot be said that it is compulsory to disclose interest on PPF. This is specially relevant because PF/PPF is something that almost every person filing ITR1 is earning.

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NITIN DAYALJI DAVDA

NITIN DAYALJI DAVDA (Querist)
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10 March 2014 Sirji, thanks a lot for your quick response, I have noticed that you are the quickest of all.