Deductions u/s 80c or exempt u/s 10

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This query is : Resolved

Praveen (Querist)

21 November 2011 Is Interest accrued on Public Provident Fund, Interest accrued on NSC, Employer's Contribution to Pension Fund upto 12%.. exempt u/s 10 or is allowed as deduction u/s 80C..

CA Navin Jain

CA Navin Jain (Expert)

21 November 2011 ONLY INTEREST ACCRUED ON NSC IS TAXABLE, HENCE SAME WILL BE ALLOWED AS DEDUCTION UNDER SECTION 80C

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Praveen

Praveen (Querist)

21 November 2011 Thank you Sir,
Please tell me the treatment of Int. on PPF,
and Employer's contribution to PF

CA Navin Jain

CA Navin Jain (Expert)

21 November 2011 its not taxable, if amount is not taxable when no deduction.

Praveen

Praveen (Querist)

21 November 2011 As you say its not taxable.. Can you please tell me under which section it is exempt..

CA Navin Jain

CA Navin Jain (Expert)

21 November 2011 under sec 10

Praveen

Praveen (Querist)

21 November 2011 In case of Employer's Contribution to PF
INCOME FROM SALARY:
Employer's Contribution to PF xxx
Less: Exempt u/s 10 xxx

In case of Interest accrued on PPF and NSC
INCOME FROM OTHER SOURCES:
Interest accrued on PPF xxx
Less: Exempt u/s 10 xxx

In case of Interest accrued on NSC
INCOME FROM OTHER SOURCES:
Interest accrued on NSC xxx
The same amount is claimed as deduction u/s 80C

Is the above treatment correct..

Plz reply

Prakash Tolani

Prakash Tolani (Expert)

21 November 2011 it is ok.
PPF interest is fully exempt u/s 10

NSC Interest is taxable income from other source and allowed as deduction u/s 80C

Employer contribution to PF is exempt upto 10% of salary, exceeding part is taxable under the head salaries but exceeding part is not allowed as deduction

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