Hello, can anyone tell me if PPF interest needs to be reported while filing ITR under the new tax regime, or is it automatically exempt and ignored?
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How to Show PPF Interest in ITR Under New Tax Regime?
You are not required to pay tax on PPF interest or maturity amount as it is fully exempt under Section 10(11) of the Income Tax Act. Well, if you fill ITR, you should always disclose it in the “Exempt Income” section.
Steps to Show PPF Interest in ITR
- First calculate the total PPF interest earned during the financial year.
- Now, go to the “Exempt Income” schedule in your ITR form.
- Here you have to enter the amount under the “Exempt Income-Others”.
No tax will be added but this process will make sure your ITR shows correct informations.
Important Points
- The PPF stays tax free in both the regimes New as well as Old one.
- There is no need to claim deductions under 80C if you are filing under the new regime.
Example
Suppose you have earned Rs. 12,000 interest on your PPF in FY 2024-25.
While filing ITR, you go to the Exempt Income Section and enter Rs. 12,000.
This won’t increase your taxable income. Your ITR will show that this income was exempt.
PPF in Old vs New Tax Regime
| Particulars | Old Tax Regime | New Tax Regime |
|---|---|---|
| Deduction on PPF Contribution | Allowed under Section 80C (up to â‚ą1.5L) | Not allowed |
| PPF Interest Taxation | Fully Exempt (Section 10(11)) | Fully Exempt (Section 10(11)) |
| Maturity Amount Taxation | Fully Exempt | Fully Exempt |
| Disclosure in ITR | Under “Exempt Income” | Under “Exempt Income” |
No worries – PPF interest is completely tax-free, even under the new regime. You don’t need to add it while filing ITR since it’s exempt by default. Basically, PPF is one of those rare EEE investments (no tax when you invest, no tax on interest, no tax at maturity).
If you’re curious how the interest is actually calculated and how much you’ll get at maturity, this breakdown might help: