- Max. limit u/s 80C would remain the same i.e 1.50 lacs. However, you can invest Rs.50k additionally in NPS to claim deduction of Rs.2 lacs.
Clarification regarding ppf yearly limit for tax exemption
My query is that i am earning 10 lakh p.a. Every year my epf is deducted by the organisation which amount to 72 k per year . I am also contributing in my ppf account every year @ 80-90 k thinking that total sum of (epf + ppf) contribution amount to 1.5 lakh per year which is maximum tax exemption limit under section 80 c of income tax. I just want to ask if i deposit 1.5 lac amount in ppf very year instead of 80-90 k and epf contribution remains the same , will i get tax exemption on whole ppf amount of 1.5 lakh ( knowing that 80 k + 1.5 lac will amouunt to 2.3 lakh which is outaside of 80 c act ).
Asked 4 years ago in Income Tax
Yes you can invest maximum 1.5 lakh in PPF it doesn't take into account EPF contribution but the deduction would be restricted to 1.5 lakh.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
sir i want to know if i deposit 1.5 lakh in ppf only will the tax be deducted on whole ppf amount with epf contribution is there? ( not interested in NPS )
Asked 4 years ago
Hi,
Even if you deposit 1.5 lacs in PPF, you can still claim deduction of 1.5 lacs only because the maximum limit for deduction u/s 80C is 1.5 lacs only.
Dear Sir,
The maximum amount of Deduction u/s 80C is allowed upto the limit of Rs. 150000, whether you invest it through PPF or EPF Contribution.
Thanks & Regards
Shiv Kumar Agarwal
Dear Sir,
Hope you are doing well !!
The current income tax laws allow maximum tax break of Rs 1.5 lakh per individual per financial year under section 80C of the Income Tax Act.
No, the tax will be deducted on remaining amount.
It is advisable to take a phone consultation for detailed discussion.
Hello,
The total deduction u/s. 80C would be restricted to Rs. 1.50 Lakhs, even if you deposit Rs. 1.50 Lakhs in PPF.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Hi
Maximum limit under section 80 C is Rs. 150000 lakh. It is overall limit for deduction under section 80 C.
Hi
TDS will be deducted on additional amount.
You will get combined deduction of PPF and EPF contribution till 1.5 lakh under 80C.
Total deduction under 80C is 1.5 lacs no matter how much you invest. Also, the investment limit in PPF for one year is 1.5 lacs. If you invest 1.5 lacs in PPF deduction will be available.
Whatever be the combination, the tax exempted will be 1.5 lakhs u/s 80 C and the remaining income is taxable.
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA