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Regarding Ppf Interest income

Kamlesh Tolani (accountant) (562 Points)

27 January 2020

Respected all members
PPF Interest amount credited 01-04-2018 for the fy.2017-18
and 2018-19 Ppf interest credited in 31-03-2019 so
one year two years Ppf interest credit so how can taken in income tax return.

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9 Replies

RAJA P M ("Do the Right Thing...!!!") (127150 Points)
Replied 27 January 2020

Check out the Interest amount in FY 17-18 ITR for provisionally. If not accounted in FY 17-18 ITR then take the interest amount as IFOS in FY 18-19...

If FY 17-18 interest accounted then it will adjust to the provision entry...

Kapadia Pravin (17249 Points)
Replied 27 January 2020

Usually PPF interest is credited by bank / post office on 31st March. May be one day overlapping. You can go to bank/PO where you have Account , they will correct date in pass book.

You can well consider 31st March and ignore 1st April date.

Note that PPF interest will come under Exempt Income Schedule. It will not be IFOS. Interest is fully Exempt.

rama krishnan (12234 Points)
Replied 27 January 2020

Generally incidence of income will be reckoned from the date of accrual or credit whichever is earlier. hence as on 31st, the interest on PPF is accrued and the same has to be taken as date of receipt. as said by Mr kapadia, PPF interest is exempted hence the date of receipt has no role to play

RAJA P M ("Do the Right Thing...!!!") (127150 Points)
Replied 27 January 2020

@ Mr Rama Krishnan.,

Yes... PPF interest is exempted.
But, as per date of interest and entry in books based on receipts. Interest credited in 1st April then it will be book accrual basis in PY's account...
Am I Right Mr Ramakrishnan...?!

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 27 January 2020

@ raja sir if the assessee follows cash basis accounting then it'll be accounted according to the receipt date and if he follows mercantile system 31st would be his accrual date