July 8, 2013 11:55 am
Dear Nsabhyankar, my counter question to you, if you are adding PPF interest, why not adding PF interest, as it’s also exmpted.
The PPf amount is to be reported only in the year of withdraw be it partial or full.
Please understand first what is income and what is exempt income.
Income = Money you got in your hand ( or in your bank account)
exempt income = Tax free Income.
In case of PPF or EPF interest, it is getting added in PPF or EPF account not in you bank account so this interest is not the part of your income.
When you withdraw PPF or EPF (after maturity) that time this will become your exept income.
Please stop reading half backed articles of the commercial sites…
Find some good sites which provides full information like jagoinvestor.com, http://bemoneyaware.com/blog/
PPF is not taxable but the article here says that if your exempt income is more then 5k, then you should not use the ITR 1 form. We have to mention the exempt income, right?
Please see the section: Choose the right form
If you have income from only one property then use ITR 1.
PPF interest is not taxable.
I have rented out my flat and reported the rental income to my employer. There is a net negative income from house property in form 16 considering the home loan interest.
Also, I have earned an interest of more than Rs. 5k on PPF for the FY 2012-13.
I have to use the return form number 2 and NOT form 1, right?
Also, where do I denote the FD’s in this form? Any other point I should be aware of?
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