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Ppf a/c head in tally

15 July 2020

As i am starting my business and using tally for Accounting. So, i want to know that under which head PPF A/c will be shown. And will the interest received be shown in indirect income or not?

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7 Replies

RAJA P M ("Do the Right Thing...!!!") (127700 Points)
Replied 15 July 2020

All PPF account related ledgers shown under Current Liabilities...

Yes... You are exactly correct. Interest Received will be under Indirect income..

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hitesh banshilal porwal (article) (49 Points)
Replied 15 July 2020

Ppf account show under investment head and interest is exempt from tax. your contribution is allow as deduction under section 80(C). and employer contribution is exempt subject to withdraw after 5 year.

RAJA P M ("Do the Right Thing...!!!") (127700 Points)
Replied 15 July 2020

@ Mr Hitesh.,

Read the query carefully...

CA Raj Doshi (Practising CA) (8893 Points)
Replied 15 July 2020

PUBLIC PROVIDEND FUND ( PPF ) shall come under investments. and interest income on PPF shall be recorded under capital account.

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RAJA P M ("Do the Right Thing...!!!") (127700 Points)
Replied 15 July 2020

As per my understanding the query as Business account and the PPF question raised for paid to employees...

Better to get back details from Querist...

So, wait on further reply.

If query as per my view then my reply is correct...

Incase query raised individual account (as Querist own PPF) then it will be under Investments head...

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CA KALPESH LAKHANI (PRACTICE) (322 Points)
Replied 17 July 2020

PPF is an Investment, and it should by classified under investment.Interest on PPF A/c is classified under Capital A/c and not under indirect income, as it is not your business income.

1 Like