Table of Contents
Is interest received on fixed deposits eligible for exemption?
Interest income from Fixed Deposits is fully taxable. Add it to your total income and get taxed at slab rates applicable to your total income. It is to be reported under the head ‘Income from Other Sources’ in your Income Tax Return.
How much interest on GPF is taxable?
The threshold limit shall mean – Five lakh rupees in the case of the General Provident Fund available only for government employees in India and where employers do not contribute and Two lakhs and fifty thousand rupees in other cases. Interest @ 8.5\% pa on balance at the end of the month.
Is GPF amount received taxable on retirement?
All the three provident funds provide tax deduction under Section 80C of the Income Tax Act, 1961. Furthermore, the interest earned on all three provident funds is tax-free.
What are the tax benefits of GPF and PPF?
GPF and PPF tax benefits: Under Section 80C of the Income Tax Act, 1961, contributions, interest accrued, and final withdrawals from PPF are exempted from tax. GPF and PPF loan facility: GPF Advance is a facility offered to the account holder/employee wherein he or she can obtain loan against GPF throughout his or her career.
Are PPF deposits exempted from tax?
The deposits made every year toward a PPF account are eligible for tax exemption up to Rs.1.5 lakh under Section 80C of the Income Tax Act. Moreover, the interest earned on the balance amount in a PPF account along with the maturity value is exempt from taxation. Employees’ Provident Fund is a retirement-cum savings scheme similar to GPF.
What happens to your GPF amount when you die?
Finally, on the death of the subscriber, the GPF amount will be paid to his/her nominee. Contributions to GPF are exempt from tax. The interest rate on GPF is also exempt from tax. EPF is the government-backed saving scheme which provides a social security net to the employees working in the organized sector.
What is the rate of interest on GPF loan?
No interest rate is applied to the borrowed sum. Any number of GPF cash advances can be availed of by the employee. Loan against PPF can be availed of between the 3rd and 6th year of opening the account. Up to 25\% of the PPF account balance can be obtained as loan.