sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Direct Tax »
 CBDT breather soon on past angel tax demands
 Infosys-built system to cut tax return processing time to 24 hours by 2020
 Notification No. 04/2019-Central Board of Indirect Taxes and Customs
 Income tax exemption limit likely to be increased to Rs 5 lakh
 Bringing back the local in the national tax regime
 CBDT chief cautions I-T officials about direct tax collection growth rate
 No TDS for long-term property lease premium, says Mumbaiā€™s Income-tax Appellate Tribunal
 Bansal Overseas 121 KM Stone, Near Namastesy Chowk, G. T. Road Karnal vs. ACIT Karnal Circle, Aayakar Bhawan, Sector- 12, Urban Estate Karnal
 How to invest, how much you may invest and save in taxes SBI Tax Saving Scheme
 Taxman on a refunds spree as income tax returns hit record high in FY19
 CBDT issues final notification on securities tax exemption

Income Tax Returns (ITR) filing: Interest from PPF is tax exempt; but on NSC, it is taxable
November, 05th 2018

Deduction under section 80C of the Income Tax Act 1961 (Act) can be claimed to the extent of Rs 1,50,000 cumulatively for the items specified in that regard.

Income Tax Returns Filing: Ever year when filing the income tax return, we come across a lot of issues. One of them is related to tax exemption related investments. Below is one such query answered by Chirag Nangia:

Last year I invested in ELSS for tax-saving but since this year market is down I don't want to invest in stocks. Since I already have EPF from my office, should I still invest in PPF? And are NSC and Kisan Vikas Patra also good to invest in? – Vijay Kadam

Deduction under section 80C of the Income Tax Act 1961 (Act) can be claimed to the extent of Rs 1,50,000 cumulatively for the items specified in that regard. From the tax point of view, you may consider to invest into PPF or NSC to an upper limit of Rs 1,50,000 including employee's contribution to EPF. However, it may be noted that the interest earned from PPF is currently exempt from tax whereas interest on NSC is taxable. Please note that investment in Kisan Vikas Patra does not offer any tax benefit, that is, neither the investment is deductible nor the interest earned is tax free.

I will be retiring from BARC and will be shifting to a rented house since my son is completing his studies. For a couple of years till he finds a job we plan to stay in Mumbai and later shift to Chennai. Can I claim tax exemption on the rent I pay as now I am not employed? To whom should I show the rent receipts? – Venkat Ranganathan

The deduction for rent paid may be claimed under section 80GG of the Act within prescribed limits and prescribed conditions as entailed in the section. A taxpayer who neither claims the benefit of house rent allowance nor has claimed the deduction under any other section of the Act, can claim benefit of deduction under the aforesaid section. However, the taxpayer/ close relatives should not own any accommodation at the place where he resides/ carries out its business/ duties or at any other place where he is claiming the tax benefit for the property as a self-occupied property.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions