Answer

ITR

Reporting exempt income like PPF interest in ITR-1

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

  1. Facts

    Yes. Exempt income such as PPF interest and agricultural income up to ₹5,000 is reported in the exempt income section of ITR-1. It does not increase tax.

  2. Provisions and law

    • Sec 10(11), Income-tax Act 1961 (now Sec 11)Interest on PPF and similar specified funds is exempt.

  3. Analysis

    If PPF interest credited in the year is ₹45,000, report it under exempt income. This helps explain deposits and investment growth if questioned later. Do not mix it with taxable interest.

  4. Conclusion

    1. Get the PPF passbook entry for the year.
    2. Note other exempt receipts.
    3. Fill the exempt income section.
    4. Keep proof with your records.

A Savvy can do this for you

Income tax return for salaried and pensioners, ITR-1 (Sahaj)

₹999

Get this doneAsk a Savvy on WhatsApp

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

People also ask