Sec 14 a (urgent)

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CA Sambhu (Querist)

05 November 2012 Can anybody tell me the applicability of Dis allowance u/s.14 A on PPF Interest received.
if there is any case law then please give me the details of that.

Thanks in Advance

Gayathri Devi

Gayathri Devi (Expert)

05 November 2012 Section 14 A is applicable as per the propotion of the amount invested in the exempted assets. For example if the amount of exempted asset is Rs.100000 & taxable asset is Rs.100000 then the interest paid Rs.50000 then it sholud be approprited Rs.25000 each to taxable & exempted asset.So calculate in this manner.

CA Sambhu

CA Sambhu (Querist)

07 November 2012 dear friends,
my query about applicability of sec 14 a on ppf interest received.

Gayathri Devi

Gayathri Devi (Expert)

07 November 2012 PPF Interset is exempt income. Then section 14 A applicable for teh PPF Interest also.

CA Sambhu

CA Sambhu (Querist)

07 November 2012 But the investment in PPF is as per the guideline of the Income tax and it is invested for the purpose of the tax saving.

and when investment is for tax saving and as per the income tax guideline how can the ITO disallow any amount from such income.