POSTED BY April 24, 2013 12:15 pm COMMENTS (6)ON
Tax benefits can be availed for theamount invested and interest accrued is tax-free. A withdrawal ispermissible every year from the seventh financial year of the date ofopening of the account and the amount of withdrawal will be limitedto 50% of the balance at credit at the end of the 4th yearimmediately preceding the year in which the amount is withdrawn orat the end of the preceding year whichever is lower the amount ofloan if any.
I am interested to know the Tax Implication on this? Does it still be Tax Free???
Also, one of my coleague mentioned to remove this amount and then put it back again for availing Tax benefits… he can continue doing with some amount every year after 7th year.
By this way he can save tax as well with out any New investment…
Is it that simple…. i feel there is a catch, what you guys say.
*** I agree it is not best practise to remove the money, but wanted to know if this will act such simple?