Pawan Mittal (CA Final) (711 Points)
05 June 2017Dear Experts
Mr. X was depositing some amount in his PPF account annually and he was earning interest on PPF. But he failed to show interest earned on PPF in his income tax return.
What are the consequences for the above failure?
He had deposited total Rs. 10 Lakhs in PPF and interest thereon amounted to Rs. 250000.
Now when he withdraws all the amount from his PPF account i.e Rs. 12.5 Lakhs, What will be the tax implications?
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 05 June 2017
Pawan Mittal
(CA Final)
(711 Points)
Replied 05 June 2017
Mr. X's PPF Interest Income for Financial Year 2016-17 is Rs. 20000.
Now should he show the total PPF Interest till date i.e. Rs. 250000, that was not shown by him so far in his income tax return or the current F.Y.'s PPF Interest of Rs. 20000 in income tax return for F.Y. 2016-17 as exempt income?
Poltu Ghosh
(Job)
(1865 Points)
Replied 05 June 2017
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