1.In case i want to withdraw my PPF investment before the maturity date then will it be liable to tax?
for eg. if i invest Rs. 50000 each year in PPF for 10 years and if after 5 years only i withdraw the investment then is this amount of Rs. 250000 liable to tax??
2. On maturity of my PPF will i be liable to pay any tax on my income from PPF??
for eg. if i invest Rs. 50000 every year in PPF for 10 years which is the maturity period then will this amount of Rs. 500000 be liable to tax on maturity after 10 years??
Re: Re: Taxation on premature withdrawal of PPF
by Durga singh on Sep 05, 2011 12:16 PM
in case i want to withdraw my ppf investment before the maturity date then will it be liable to tax
dear sir, Suppose i am a PPF account holder fot last three years and from forth year I am unable to pay my yearly instalment or during forth year i may pass away.In these cases whether I or my nominee will get deposited amount or not. Please clear the matter.
The new FBT taxes imposed by Mr.Chidambaram are simply meant to milk the salaried class as if they are milch cows. This is a bloodsucking tax for the salaried people, who have to produce bill for every other component of their HARD-EARNED SALARY, other than the basic salary.
It is completely disgusting and incomprehensible for me to contribute to the coffers of a government which cannot provide us good infrastructure and living conditions. The taxes paid by us never bebefit us, the major portion of it goes in the pocket of our inefficient babus and netas through sham projects and schemes.
We the middle class fuel the growth of the econmomy by our hard work and taxes, while these netas and babus sleep unperturbed on wads of ill-gotten money.
But there is nothing new to this style of ridiculously high level of tax imposition on the middle classes. It is the typical style of all previous governments and the present FM is simply reconfirming the old trend.
RE:Chidambaram's tax policies are anti-salaried classs
by on Jul 19, 2007 11:04 AM
What you told is EXACTLY CORRECT. Thats why Black Money is increasing in India like anything, and this is the reason for many people they dont pay tax, wheneven it is possible we should not pay tax to govt. These sucking politicians are filling their pockets with our salaries.
Section 80 C which has been newly introduced in from this year onwards, is nothing but an eyewash. Especially for all those who are not going to retire in near future say 15 years. Till now PPF which was never taxed on withdrawal, will be taxed from now onwards under so called EET rule.Even this too is not very clear and this Harvard Graduate finance minister has left it for people to guess what will the outcome be. Also this guy has not made it clear whether earlier PPF investments will be taxed or not and left them to the mercy of Bank or Post office officers. In summary 80 C is not a Tax saving tool but a deferred tax which will be useful only to those who are of age around 50 years.
In the budget speech the Finance minister has made some statment that it might be taxed after the committee constituted for this gives its reports. Let us not draw hasty conclusions before the committee itself has not been formed. The Government might apply this EET only for the deposits made after a particular date
I read your article as well those posted by other readers ; For a scheme with a lock-in period of 15 years,any change in the basic scheme initiated by the government should definitely be viewed as one with MALAFIDE INTENTIONS ...
People invest in PPF primarily for three reasons:
1.TRUST, as it is a Govt scheme
2.Savings for one's old age or retirement
3.Tax planning
As far as flexibility of the scheme is concerned,the Govt. has a right to change the interest rate as and when it desires ....,BUT to change the format of the scheme itself is atrocious....
Mr.Chidambaram talks big about implementation of international practices,but he should first implement a SOCIAL SECURITY CARD concept for every citizen & take up responsibility for implementation of the same;Taxation rates are as high as the developed countries,in fact probably more than them, but health benefits,old age homes,subsidised education etc. are areas which he does not want to address ...
Definitely one would have to knock the doors of the judiciary ,in case this happens...I hope that the Left takes up this issue just like the way they took up cudgels on behalf of the EPF scheme !!!
