Mandeep S. Virdi (Sr. Executive Legal) 16 April 2014

Ppf withdrawal - benefit u/s 80-c

Say you invest in PPF in April 2014 (towards the beginning of the mth).

(a) The 15 yr term of the said PPF shall expire on 30.04.2014.

(b) In the event the entire corpus Amt is withdrawn on 30.04.2014, would the amount invested towards the beginning of the month be considered for seeking Tax Exemption u/s 80-C of the IT Act.

Acc to me, the same can be applied as exemption. But the same shall be disallowed by the ITO.

Request you to kindly suggest / advise on the aforesaid please.

Rgs,

Mandeep Virdi - 9920057348

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2 Replies

Kumar Doab (FIN) 16 April 2014

12 installments/year are allowed.

The yearly deposit up to Rs1Lac fetches deductions u/s 80C.

We would like to understand why ITO shall decline to allow deduction on first month deposit?

Mandeep S. Virdi (Sr. Executive Legal) 18 April 2014

I had opened my PPF, 15 yrs back.. As a std process and to cover my 80-C requirements was transferring funds online to the said PPF A/c. Following the same process, I trsf funds on or about 02.04.2014 to meet the requirements of 80-C for the FY 2014-3015..Post trsf I came to know that the PPF is maturing on this month end.. Now I am in fix and want to understand that in the event entire corpus is withdrawn (including the payment made on 02.04.2014), would I get the benefit of seeking exemption while filing my return. According to me I wld b able to withdraw entire accumulated amount, however wld not be able to seek exemption.. This is what i wanted to check...