Mr X is having deposits in two PPF accounts for FY 2016-17 as follows: Rs 1,50,000/- in the PPF account in his own name and Rs. 1,00,000/- in PPF account in the name of his wife. please advise as to what will be the taxability of interest accruing on the deposits in the PPF account of his wife. will the amount of interest, if taxable, be taxable in the hands of Mr X? or in the hands of his wife?
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Taxability of interest on ppf account
Replies (5)
interest on ppf is exempt
Conceptually PPF Interest will be taxable in the hands of Mr X, Since deposits in PPF Account is made by X and no adequate consideration for the same is received by him from his wife. Hence Clubbing Provisions given u/s 64 will apply and interest will be taxable in hands of X.
Now since Interest Income on PPF Account is exempt from tax, no question of tax arises. But instead of PPF Account, had it been Fixed Deposit Interest, it would have been taxable in hands of X.
Now since Interest Income on PPF Account is exempt from tax, no question of tax arises. But instead of PPF Account, had it been Fixed Deposit Interest, it would have been taxable in hands of X.
Thank you very much..
thank you..
thank you..
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