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Tax treatment of accruals in PPF

The government has clarified yesterday that there is no change in the taxation treatment of PPF

Please clarify what will be tax treatment of accruals in Public Provident Fund (PPF)?
- Kum Kum Sinha

There is no change in the taxation treatment of Public Provident Fund (PPF). Your investments in PPF qualify for a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. Interest earned is also tax-free. The finance minister had proposed to change the taxation of Employees Provident Fund (EPF) at the time of withdrawal in the budget. Some people thought the proposed changes would also apply to PPF. However, the government has clarified yesterday that there is no change in the taxation treatment of PPF.

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