How is EPF+PPF contribution that exceeds 1,50,000 taxed?

You can invest any amount in PPF and EPF. The amount invested is not taxable and you can claim deduction under section 80C in aggregate for them upto Rs.1,50,000/-.On maturity PPF amount with interest is tax free and same rules applies to EPF amount.

So get back to your case, The person who have invested Rs.1,70,000/- to PPF and EPF is not require to pay any tax on them.

For any Query contact me on bansal.deepanshu1000 @ gmail.com

Originally posted by : Deepanshu Bansal
	You can invest any amount in PPF and EPF. The amount invested is not taxable and you can claim deduction under section 80C in aggregate for them upto Rs.1,50,000/-.On maturity PPF amount with interest is tax free and same rules applies to EPF amount. So get back to your case, The person who have invested Rs.1,70,000/- to PPF and EPF is not require to pay any tax on them. For any Query contact me on bansal.deepanshu1000 @ gmail.com

Thanks for the reply.

As the limit for 80C is for 1,50,000, what will happen to the exceeded 20,000? Is it taxed as per his tax slab? How is it calculated?

Sir Rs.20,000/- is not taxable as they have invested it. We need to pay Income tax on Income only , Rs.20,000/- is the invested amount  so no tax will be applied on it.

Originally posted by : Deepanshu Bansal
	Sir Rs.20,000/- is not taxable as they have invested it. We need to pay Income tax on Income only , Rs.20,000/- is the invested amount  so no tax will be applied on it.

Thanks for the information. But as the limit is only for 1,50,000 something should happen, they have to take some action. Like this we can invest any amount in EPF or PPF.

Limit are already for PPF and EPF

1. One can invest upto Rs.1,50,000/-  in PPF in Each Financial year and Greater than Rs. 1,50,000/- is not allowed in PPF

2. Emploee and employer both contribution in aggregate can be Rs.15,000/- per month and in a year it can be Rs.1,80,000/- 

Originally posted by : Deepanshu Bansal
	Limit are already for PPF and EPF 1. One can invest upto Rs.1,50,000/-  in PPF in Each Financial year and Greater than Rs. 1,50,000/- is not allowed in PPF 2. Emploee and employer both contribution in aggregate can be Rs.15,000/- per month and in a year it can be Rs.1,80,000/-

Thank you for the information.

So what happens to the EPF if i already contributed 1,50,000 to PPF. Will the EPF be taxed later as PPF is Exempt Exempt Exempt category. As 80C is only for 1,50,000 exemption, something should happen to the exceeded amount, either it should be taxed or it should be refunded. What rule or law applies here?

I got the answer to my question.

So, yes you can contribute more than 1,50,000 towards EPF and PPF but you can claim 80C deduction only for 1,50,000 and the exceeded amount cannot be used for claiming for any additional deductions.

Thank you for all the replies Deepanshu.

I got the answer. It is clear now.

Yes You got it all right and Welcome