Can I invest Rs 1.5 Lakh in both EPF and PPF in a FY?

Can I invest ₹1.5 Lakhs in EPF and ₹1.5 Lakhs in PPF in a single financial year?
- Dhananjay Banthia

Yes you can. But you can claim a tax deduction of only ₹1.5 Lakh per financial year under Section 80C for all your eligible investments put together. Employees Provident Fund (EPF) and Public Provident Fund (PPF) along with other investments like life insurance premiums, ELSS, tuition fees of children, NSC, home loan principal, tax saving FDs etc all put together can get a deduction of only up to ₹1.5 lakh in the current financial year. If you invest more than this limit, it will not be eligible for this deduction. Please note in EPF, the employer's contribution is exempt from tax, and your contribution (i.e., employee's contribution) is counted towards section 80C investments.

This article was originally published on July 27, 2016.