PPF

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2010 Hi friends... whether withrawal from ppf is taxable???

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

20 January 2010 No. Not taxable. Also interest exempt u/s 10(10D)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

20 January 2010 Right now it is tax free. However, once the Direct Tax Code comes into effect in April 2011, both the PPF and the EPF, which are currently under the EEE regime, are likely to move to the EET regime of taxation. Therefore, the benefits received in respect of contributions made after 2011 would be taxable. However, the balance accumulated along with the accretion thereon till March 2011 shall be exempt from tax at the time of withdrawal.

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2010 thanks 2 MR. ADITYA & Warrier.. can u tell me that how it can be shown in return?? means under which head...

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

21 January 2010 When you pay PPF then deduction is claimed u/s 80C and when interest accrues on PPF the same is shown in the exempt income column under the head interest.

However there is no provision to show withdrawl of PPF as yet in the return.

Also the provisions as mentioned by Chackrapani Sir are proposed and there is a strong resistance from all ends to not to implement the EET regime. However nothing has been finalised as yet and the direct tax code is yet to become a bill.

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