12 October 2009
What is the amount of Deduction allowed u/s 80C for PPF for P. Y. 2009-2010 if i withdraw Rs. 50,000/- on 01/06/2009 and deposit Rs. 70,000/- on 30/03/2010? Will my deduction amount to Rs. 70,000/- or Rs. 20,000/-?
12 October 2009
Interest earned as well as Principal amount withdrawn as per prescribed eligility criterion, are exempt from tax. So, in your case, Rs 70000 is eligible for Deduction u/s 80-C.
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