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
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.
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