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Ppf a/c head in tally

12154 views 7 replies

Mayank Garg

3 Points Posted on 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?

Replies (7)

Quick Summary

PPF should generally be classified under Investments in Tally. Interest earned on PPF is tax-exempt and is typically credited to the capital account rather than indirect income, as it is not business income. The treatment may vary depending on whether the account belongs to the business or an individual.

RAJA P M

"Do the Right Thing...!!!"

128152 Points Posted on 15 July 2020

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

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

hitesh banshilal porwal

article

49 Points Posted on 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...!!!"

128152 Points Posted on 15 July 2020

@ Mr Hitesh.,

Read the query carefully...

CA Raj Doshi

Practising CA

8954 Points Posted on 15 July 2020

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

RAJA P M

"Do the Right Thing...!!!"

128152 Points Posted on 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...

CA KALPESH LAKHANI

PRACTICE

322 Points Posted on 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.