In article it says that Interest on PPF is totally exempt from tax.
But i searched in some more site it says that PPF comes under EET where the interest on the PPF will be taxable. can you explain which is correct.
2 Answers
As of now PPF is under EEE only and interest received is completely exempt from tax. In DTC (Direct Tax Code) there was a discussion to make it EET, but DTC is still not in place. Most probably they will leave PPF as EEE only as India doesn't have any other social security benefits for its citizens.
Yes I totally agree with Pankaj and interest on PPF is tax free and you can claim a tax deduction of Rs 100000 maximum under sec 80c by investing in PPF
Related