exemption

Income Tax Deduction on Investment in PPF and Provident Funds

• An individual can claim deductions for deposits made in PPF accounts in the name of self, spouse, and children even if major.

• HUFs can claim the deduction under the section for deposits made for any member of the family.
• The maximum deduction allowed is Rs.100,000 for AY 2014-15 and Rs.150,000 for AY 2015-16, AY 2016-17, and AY 2017-18.
• Investments in PPF earn fixed annual compound interest. For FY 2016-17, an interest of 8.1% has been declared by the Ministry of Finance.
• PPF has a 15-year tenure, from which the amount can not be withdrawn prematurely.
• Partial withdrawals equivalent to the total of the last three years contribution to the PPF account is allowed, that too after completion of a set number of years.
• You can also take a loan against the total available amount in the account.
• Contribution to EPF not exceeding Rs.150,000 too earns tax benefit under Section 80C. 12% of the salary is invested in EPF. 

For more details refer::: tax-treatment-of-provident-fund.page