Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

Is interest earned in pf account taxable?

Vunu (Developer) (135 Points)

04 April 2018

Is Interest earned in PF account taxable after resignation and having no other job?

Reply
Follow
Share

6 Replies

Shaik Sharief (Article Assisant) (87 Points)
Replied 04 April 2018

Any amount Deposited To PPF falls under exempt category and therefore claimed as deduction U/s 80C .

at the time of withdrawal all proceeds from PPF is also exempt provided the PPF account is not closed prematurely.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

RAHIL (ACCOUNTANCY) (247 Points)
Replied 04 April 2018

Yes it is exempted.

Vunu (Developer) (135 Points)
Replied 04 April 2018

Shaik-ji, Rahul-ji, I want to know about PF (the account in which employer puts money on monthly basis).

I do not want related to PPF. Kindly consider it.

Rahul Prajapati (Student) (2282 Points)
Replied 04 April 2018

1) Statutory/Public Provident Fund Interest is Fully Exempt.

2) Recognized Provident Fund Interest is Taxable in Excess of 9.5% p.a.

Shaik Sharief (Article Assisant) (87 Points)
Replied 04 April 2018

YEAH IT IS EXEMPT !

Upgrade to CAclubindia Pro. Subscribe Now!

Rishi (NONE) (163 Points)
Replied 04 April 2018

IF IT IS A RECOGNIZED PF : if u resign after 5 years,then amt of withdrawal from pf(including interest on employer /employee contribution will not be taxable). However if resignation is with in 5 years, u can claim relief from taxability via form 15G/15H (Subject to few conditions).