LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Ppf interest not shown in income tax return

Pawan Mittal (CA Final) (702 Points)

05 June 2017

Dear Experts

Mr. X was depositing some amount in his PPF account annually and he was earning interest on PPF. But he failed to show interest earned on PPF in his income tax return.

What are the consequences for the above failure?

He had deposited total Rs. 10 Lakhs in PPF and interest thereon amounted to Rs. 250000.

Now when he withdraws all the amount from his PPF account i.e Rs. 12.5 Lakhs, What will be the tax implications?

Reply
Follow
Share

3 Replies

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 05 June 2017

Interest earned on PPF is exempted under IT Act.So no need to worry.

If he withdraw amt then also it is exempted.

2 Like

Pawan Mittal (CA Final) (702 Points)
Replied 05 June 2017

Mr. X's PPF Interest Income for Financial Year 2016-17 is Rs. 20000.

Now should he show the total PPF Interest till date i.e. Rs. 250000, that was not shown by him so far in his income tax return or the current F.Y.'s PPF Interest of Rs. 20000 in income tax return for F.Y. 2016-17 as exempt income?

Poltu Ghosh (Job) (1865 Points)
Replied 05 June 2017

only income during the year is required to be reported in the return. so only Rs 20000 needs to be reported in the current years return and not the entire Rs 250000.