Tuesday, 1 March 2016

Government clarifies tax exemption on PPF

Seeking negative response on taxing of withdrawal of Employee Providend Fund, PPF etc. the Government today clarified that there will be no tax on withdrawal made under Public Provident Fund (PPF).
It further clarified that only the interest which accrues after 01.04.2016 in Employees Provident Fund will be taxed that also to the extent of 60%. The principal amount will remain to be tax exempt.

Thus, under the current scenario the PPF remains to be tax free at the time of withdrawal as well.

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