Is an assesse eligible for ppf interest deduction u/s 80c for an amt over and above rs. 70,000 after a deposit of rs. 70,000.
I.e. if ppf interest is 20,000 and amt invested is rs. 70000 in that year than total deduction should be 20,000 + 70,000=90,000 or only 70,000(as restricted).
Only contribution to PPF A/c (subject to a maximum of Rs.70,000/- p.a.) is eligible for deduction u/s 80-C.Interest earned on PPF balance is tax-exempt but does not enjoy rebate u/s 80-C.
| Originally posted by : Balaji | ||
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Only contribution to PPF A/c (subject to a maximum of Rs.70,000/- p.a.) is eligible for deduction u/s 80-C.Interest earned on PPF balance is tax-exempt but does not enjoy rebate u/s 80-C. |
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In addition to answer by Mr. Balaji
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PPF Interest is Exempt u/s 10(11)
as PPF interest is exempted u/s 10(11),
exempted amunt does not participate under 80C, as 80C is available for investment from TAXABLE income only.
PPF investment maximum deduction allowed only Rs. 70,000/- & interest is received or accrued is exemted.
| Originally posted by : U S Sharma | ||
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as PPF interest is exempted u/s 10(11), exempted amunt does not participate under 80C, as 80C is available for investment from TAXABLE income only. |
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agreed
cheers
amount deposited in PPF a/c is exempt & that is maximum Rs. 70,000/- only. Int recd on it should not consider under deduction 80C.
I agree with Mr.Balaji.
Interest on PPF- consider as income in first instance
then claim exemption of the same!!
it is not a deduction in Total income rather an exempt income!
only PPF contribution
Amount of contribution to PPF of Rs.70,000 eligible for deduction U/S 80 C.
Interest earned on PPF amount will be exempted U/S 10(11).
80C is deduction from taxable income, so the exempted incomes can not participate in 80C
| Originally posted by : Balaji | ||
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Only contribution to PPF A/c (subject to a maximum of Rs.70,000/- p.a.) is eligible for deduction u/s 80-C.Interest earned on PPF balance is tax-exempt but does not enjoy rebate u/s 80-C. |
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