PPF is not taxable at all right now and even in DTC , so you dont have to worry on the taxation part for PPF at all .. everything you withdraw from PPF will be tax free

Manish

Fantastic article , and informative discussions going on. I should have come across your site earlier. I have one query reg PPF taxation.

Suppose I invest 1 lakh every year in PPF, in 15 years, it will go upto aprrox 30 lakhs, right. At that point, how much tax would be applicable on this amount as per DTC. Does to 30% tax apply only to the amount above 26lak ? Or is it done in some other way.

Thanks
Ranjith

Under the new code all assets will be classified into “business assets” and “investment assets”. The “business assets will be further classified into “business trading assets” and “business capital assets”. While income from transactions in all business assets will be treated as “income from business” the income from transactions from investment assets will be computed under “capital gains” some of the important changes will be (a) profit on sale of business capital assets and (b) profit on sale of an undertaking as slump sale will no longer be treated as “capital gain” (c) The income by way of interest ( other than in case of financial institutions, banks) will be treated as income from residuary sources. (d) Income from letting out of the buildings other than hotel, convention centre or cold storage, will be considered under “income from house property and not as business income.

I dont think they are now going to take out the tax on gains

Manish

Its already there : http://www.jagoinvestor.com/2010/07/changes-in-new-direct-tax-code-dtc.html

Manish

-Vineet

If you see the new revised code , it does not tax EPF and PPF at maturity , but does for MF

Manish