CIRCULAR/ NOTIFICATION ON PPF DEPOSIT

This query is : Resolved

DILIP T WORAH (Querist)
Follow

28 December 2009 THERE IS A CIRCULAR OR NOTIFICATION ON
MAKING PPF DEPOSIT IN THE BEGNING OF THE
FINANCIAL YEAR WITHOUT EARNING TAXABLE
INCOME i.e. EVEN IF WE MAKE DEPOSIT IN
APRIL OR MAY , THE AMOUNT DEPOSITED IS ELIGIBLE FOR DEDUCTION U/S 80- C
I NEED COPY OF THE CIRCULAR/ REFERENCE OF
THE SAID NOTIFICATION
THANX
DILIP WORAH

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
Follow

28 December 2009 For getting deduction u/s 80C, the payment must be out of income , whether it is current year or previous year income.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
Follow

28 December 2009 sorry, the previous reply is wrong. For getting deduction u/s 80 C it is not necessary that contribution in PPF a/c must be out of income, hence deduction is available for the contribution made at any time during the previous year. Inconveinence caused is regretted.

MAHENDRA KUMAR BAGRECHA

MAHENDRA KUMAR BAGRECHA (Expert)
Follow

28 December 2009 Under Income Tax Act,1961, if you are getting interest on PPF deposit any time during the year, it is exempt from tax hence it is not necessary to deposit the amount in beginning of the year or middle of the year or end of the year.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now