Exemption of Tax: Interest earned from PPF and Sukanya Samriddhi Account

Interest earned from PPF and Sukanya Samriddhi Account are exempt from tax. PPF and Sukanya Samriddhi Account has to reported under ‘others’ in Schedule EI of the tax return or in exempt income line item.

Interest earned from PPF and Sukanya Samriddhi Account


Income of a minor child is clubbed with the income of his/her parent whose income is higher. Interest earned from PPF and SSA are exempt from income tax in India. Such interest will need to be reported under “others”, (including exempt income of minor child) in Schedule EI (on the basis that such parent has to complete ITR-2 or ITR-3) of the tax return or in exempt income line item (if the parent is required to complete ITR-1 or ITR-4).
Interest-earned-PPF-and-Sukanya-Samriddhi-Account-income-tax

For interest from FD, an exemption under Section 10(32) of the Income-tax Act, 1961 of up to ₹1,500 per minor child can be claimed from such income that is clubbed.

Tax benefit on interest paid for home loans 

The interest paid on a home loan taken to acquire a house can be claimed as deduction under Section 24 of the Income tax Act. The entire actual interest paid/payable in respect of the let-out property can be claimed as deduction against rental income, whereas deduction in respect of the interest for self-occupied property is capped at ₹2,00,000 per financial year.

Also Read: इनकम टैक्‍सेबल नहीं है तब भी भरें ITR, बिना टीडीएस कटे मिलेंगे बहुत सारे फायदे

Further, as your total loss from the head income from house property is ₹3.5 lakh, you will be eligible to offset only ₹2 lakh against your other income for the said FY. The balance loss of ₹1.5 lakh can be carried forward for future set-off against income from house property up to eight years.
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