Under interest income for salried person do i have to show ppf intererest which will be recd on maturinty?

Question

i have salaried income of around 3 lakhs . where i have invested under sec 80 c for dedution around 1 lakhs. apart from the above my interest income what shoudl be considered as interest.- bank interst, FD INTEREST, NSC accrued int, ppf interest (since this will be recd after matruity of ppf only should it be considered as income now). Is it eligible for exemption above the 1 lakh ... under which section in ITR1

Answer 1

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Answer 2

NSC accrued interest is not income for taxpurposes - this is considered as investment and should be treated so. This also under section 80C.

PPF should not be included anywhere since this interest is again going back into the PPF account. Read here - http://www.livemint.com/2007/10/14235447...

Bank interest and others that you receive for your use and is not going back into the system as investment should be declared as "Other Income".

Answer 3

Yes, interest credited to PPF account should be shown as interest earned which is non taxable.