PPF and Section 80C of the Income Tax Act
PPF contributions qualify for tax deductions under Section 80C of the Income Tax Act, 1961. This section allows individuals to claim deductions for various investments and expenses, thereby reducing their taxable income.
Here’s how PPF falls under Section 80C
- Investments in PPF: Up to ₹ 1.5 lakh per financial year invested in your PPF account is eligible for tax deduction under Section 80C.
- Tax-exempt interest: The interest earned on your PPF contributions is also exempt from income tax.
- Tax-free maturity amount: The entire amount you receive upon maturity, including both the principal amount and the accrued interest, is not taxable.
PPF Comes Under Which Section of Income Tax Act?
The Public Provident Fund (PPF) is a popular saving scheme in India, offering guaranteed returns, tax benefits, and long-term security for investors. But, understanding the tax implications of PPF can be slightly confusing. This article aims to simplify the concept and answer the question: “Which section does PPF come under?”