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Directions (46-50): Read the following passage carefully and answer the questions given below it.
The salaried class has been expressing their discontent over taxation on PPF scheme. The government has finally withdrawn the proposal . The government said the PPF will not be taxed on withdrawal and only the interest that accrues on contributions made to the fund after April 1 will be taxed while principal will continue to be tax exempt. Revenue Secretary Hasmukh Adhia said, “The principal amount will not be taxed and will continue to remain tax exempt on withdrawal. What we have said is 40 per cent of the interest accrued on contributions made after April 1 will be tax exempt and the remaining 60 per cent will be taxed.” Adhia said that no part of PPF will be taxed and the present scheme of investment up to Rs 1.5 lakh in a year will continue to be tax exempt. PPF on withdrawal will continue to be out of the tax ambit.
The salaried class has been expressing their discontent over taxation on PPF scheme. The government has finally withdrawn the proposal . The government said the PPF will not be taxed on withdrawal and only the interest that accrues on contributions made to the fund after April 1 will be taxed while principal will continue to be tax exempt. Revenue Secretary Hasmukh Adhia said, “The principal amount will not be taxed and will continue to remain tax exempt on withdrawal. What we have said is 40 per cent of the interest accrued on contributions made after April 1 will be tax exempt and the remaining 60 per cent will be taxed.” Adhia said that no part of PPF will be taxed and the present scheme of investment up to Rs 1.5 lakh in a year will continue to be tax exempt. PPF on withdrawal will continue to be out of the tax ambit.
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