How to Show Interest Income From PPF , POSA & SSKY

ITR 13985 views 12 replies

Manik

831 Points Joined February 2008

Hi Experts,

I have opened PPF and Sukanya Samridhi Account in my daughter name from which every year I get Interest Income on 31st March 2023.Since I am the Guardian of my daughter in both these accounts, I need to know on the following : -

1. Whether I need to show these Interest Income under Exempt Income in my Income Tax Return.
2. Under which Section do I show both of them as Exempt Income in my Income Tax Return.

I also have one Post Office Savings Account on which Interest Income is exempt under Sec 10(15). When I try to find Section 10(15) in Income Tax Website during filing on my ITR, I am unable to find this Section in the ITR.I need to know how do I show this Interest Income as Exempt Income quoting relevant Income Tax Section for the same.

With Regards,
Manik

Replies (12)

CA Rakesh Ishi

Working at Private Company

8637 Points Joined December 2011

1. The interest income from your daughter's PPF and Sukanya Samriddhi Account should be shown as exempt income in your income tax return.
2. For PPF account, show the interest income under Section 10(11).
3. For Sukanya Samriddhi Account, show the interest income under Section 10(11A).
4. The interest income from your Post Office Savings Account is also exempt, but you do not need to mention Section 10(15) specifically while filing your income tax return.

Simply include the interest income as exempt income in the appropriate section for interest income.

Shankar Rugge

377 Points Joined June 2019

Dear Rakeshji Post office int income shown in 26AS and AIS under heading int from saving acts. We have to show it in other income first or else there will be mismatch. When we show it in exempt income it is the income like ppf int etc which is not shown in other income. In view of this please clarify procedure to reflect deduction of Post office int on saving act in ITR2

CA Rakesh Ishi

Working at Private Company

8637 Points Joined December 2011

Interest income is not exempt but under 80TTA You can claim deduction of Interest income from saving account with post office. Interest on Time deposit from Post Office is not exempt income.

Shankar Rugge

377 Points Joined June 2019

Post office saving bank int income is exempt under sect 10(15)(I) upto 7000/- for joint act and 3500/- for single act. This is over n above 80tta or 80 tab limit. Point is it is added to other saving act int but in itr2 where to show as deduction for the same under which schedule as no one is aware of it.

CA Rakesh Ishi

Working at Private Company

8637 Points Joined December 2011

The cumulative impact of sections 10(15)(i) and 80TTA so maximum 10,000 allowed

CA Rakesh Ishi

Working at Private Company

8637 Points Joined December 2011

Kindly refer income act from Income tax portal

10(15) (i) income by way of interest, premium on redemption or other payment on such securities, bonds, annuity certificates, savings certificates, other certificates issued by the Central Government and deposits as the Central Government may, by notification in the Official Gazette, specify in this behalf, subject to such conditions and limits as may be specified in the said notification ;

J S BHAVSAR

CONSULTING

1320 Points Joined April 2008

Why will tax free exempt income of PPF interest will come under Section 10(11)? As far as we read, Sec 10(11) and Sec 10(12) are exclusive for Statutory Provident Fund and Recognised Provident Fund. Is PPF one among them?