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Is interest earned in pf account taxable?

Vunu (Developer) (135 Points)

04 April 2018

Is Interest earned in PF account taxable after resignation and having no other job?

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6 Replies

Shaik Sharief (Article Assisant) (87 Points)
Replied 04 April 2018

Any amount Deposited To PPF falls under exempt category and therefore claimed as deduction U/s 80C .

at the time of withdrawal all proceeds from PPF is also exempt provided the PPF account is not closed prematurely.

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RAHIL (ACCOUNTANCY) (247 Points)
Replied 04 April 2018

Yes it is exempted.

Vunu (Developer) (135 Points)
Replied 04 April 2018

Shaik-ji, Rahul-ji, I want to know about PF (the account in which employer puts money on monthly basis).

I do not want related to PPF. Kindly consider it.

Rahul Prajapati (Student) (2282 Points)
Replied 04 April 2018

1) Statutory/Public Provident Fund Interest is Fully Exempt.

2) Recognized Provident Fund Interest is Taxable in Excess of 9.5% p.a.

Shaik Sharief (Article Assisant) (87 Points)
Replied 04 April 2018

YEAH IT IS EXEMPT !

Rishi (NONE) (163 Points)
Replied 04 April 2018

IF IT IS A RECOGNIZED PF : if u resign after 5 years,then amt of withdrawal from pf(including interest on employer /employee contribution will not be taxable). However if resignation is with in 5 years, u can claim relief from taxability via form 15G/15H (Subject to few conditions).