80 c reinvestment of ppf interest

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CA VISHAL GUPTA (Querist)
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15 December 2015 Respected Sir/Madam,

I would like to know weather deduction under section 80C is available for PPF interest which is Re-invested in my PPF Account, which is an Exempt Income.

Regards

Amol S Joglekar

Amol S Joglekar (Expert)
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15 December 2015 No. It is not available.
The reason is the investment should be out of income chargeable to tax. The PPF interest is NOT chargeable to tax, since it falls under exempt income.

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CA VISHAL GUPTA

CA VISHAL GUPTA (Querist)
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15 December 2015 Is Their any Specific/General Section which stops someone from claiming the said exemption or It's just a Politically Correct thing to do.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 December 2015 We can not say that it is Politically Correct. Though, we can say that it is correct in principle. We nowadays see politics without principles. Political decisions have wider impact. Whereas in taxation claiming a wrong deduction have its impact on the claimant.
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Contributions to PPF only are deductible amounts. If we contribute an amount then we are paying something into the fund. Interest Accrued is not a contribution made by the assessee. It is income which is payable by the fund to the depositor assessee at the stipulated time. It can not be termed as contribution because the amount is still not due for payment .

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CA VISHAL GUPTA

CA VISHAL GUPTA (Querist)
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16 December 2015 Thank You as I was confused as one of the experts on another site suggested Otherwise !!

Amol S Joglekar

Amol S Joglekar (Expert)
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16 December 2015 You are most welcome.
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