Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Epf and ppf deduction

anand (Accounts and Finance) (84 Points)

12 September 2016

Suppose a salaried person has invested Rs 1,50,000 in PPF Acccount.Also his EPF deducted is Rs 1,00,000 then what are the tax deductions available to him under 80C??

Reply
Follow
Share

3 Replies

Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 12 September 2016

SIR

80 C DEDUCTION IS AVAILBE YOUR WHOLE INVESTMENT UP TO RS 150000

NOT FOR A SINGLE INVESTMENT

Upgrade to CAclubindia Pro. Subscribe Now!

Saikat Bhattacharya (Manager- Finance and Accounts) (131 Points)
Replied 12 September 2016

Maximum amount that can be deposited PPF and Recognised EPF is Rs 1.5 Lakh.Deduction eligible u/s 80C is maximum upto Rs.1,50,000/- for both PPF and EPFaltogether. However, Interest earned in bothe PPF and EPF is tax Free. Current Intetest rate for EPF is 8.80%pa and PPF is 8.10% p.a. for F.Y. 2016-17 and is subject to change every year. as notified by the Govt .

Hope this will clear your queries.

Vikas Gupta (Tax Executive) (530 Points)
Replied 12 September 2016

Total investments u/s 80C (including PPF & EPF) is exempt upto Rs. 1.5 lakh. It's noticable that EPF deduction limit as per income tax is Rs. 21600/- (being Rs. 1800/- per month i.e. 12% of Rs. 15000/-). If an employer sacrifies more than 12%, the excess EPF will be treated as income first and then total exemption upto Rs. 1.5 lac can be claimed.

1 Like