Deductability of reinvestment of money withdrawn from PPF

This query is : Resolved

CA CS CIMA Prakash Somani (Querist)
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24 June 2008 I withdrawn Rs 10000 from PPF account in current FY. Now i wanted to deposit Say Rs 10000 in PPF in same FY.
So what are the tax aspects?
Few Questions are as follows:
1. Withdrawal of Rs 10000 is Taxable or Not? If yes, then Under which section?
2. Would i get deduction of deposit of Rs 10000 in PPF under Section 80C?
3. Latest Provisions related to PPF?

Thanks!!

PC-www.bharadwajinstitute.com

PC-www.bharadwajinstitute.com (Expert)
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24 June 2008
Withdrawel will be exempted...Sec 10(11).Sec 10(25)....

to claim deduction, the investment should have been out of TAXABLE INCOME... so if you say that i have reinvested the money that i have got it from PPF....no deduction will be available... however you can invest in PPF and say that it is out of your salary income/other income.....

Deposit the PPF money in some other savings account inorder to avoid complication...

PPF....minimum lock in period is 15 years...and current int rate is 8.5%... at the time of withdrawel both the principal and int are exempted..

PC-www.bharadwajinstitute.com

PC-www.bharadwajinstitute.com (Expert)
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24 June 2008 and to be practical.... reinvestment made cant be classified whether it is from taxable source or not....:)

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