Personal Finance
Claim deduction in respect of the expenses solely incurred for the purpose of conducting such business/profession
Updated : Dec 20, 2018, 06:35 AM IST
Please note that you can report the income generated from the provision of counseling to the children as "income from business or profession" in you income-tax return and claim deduction in respect of the expenses solely incurred for the purpose of conducting such business/profession. However, it is pertinent to note that appropriate documentary evidence should be maintained in respect of the income disclosed and expenses claimed as deduction.
After maturity, a subscriber has the option to extend the maturity period of the PPF account in a block of 5 years. It will continue to earn the prevailing interest rate even if you do not make any contributions.This request for extension must be given within a year of maturity in Form H. If you keep depositing without furnishing the Form for extension, the new deposits shall not earn interest and shall also not be eligible for deduction under section 80C. The maturity proceeds shall be tax free if the option to extend the PPF account is availed properly. During the five-year blocks, you can only withdraw once a year. However, the amount that can be withdrawn during the five years cannot not be more than 60% of the balance at the start of block.
Any amount accumulated in respect of a person who retires from employment after attaining the age of 55 years does not apply for withdrawal of the amount within a period of 36 months, shall be transferred to an account called an inoperative account as per the EPF Scheme. Interest shall not be credited to the account once it becomes inoperative. If you have rendered continuous services for a period of 5 years, the accumulated balance of the provident fund shall have no tax implications. It would be difficult to comment whether the new rules will be introduced with retrospective effect or prospectively. Withdrawal from the Provident Fund should entirely be your own decision.
The writer is Director, Nangia Advisors LLP