These are a set of queries raised by ET Wealth readers, which have been answered by our panel of experts.Systematic Withdrawal Plan taxation applies only to the capital gains component of each withdrawal, and not to the entire redemption amount. Given that most children’s mutual funds are structured as equity- oriented hybrid funds with a 5-year lock-in period, withdrawals can be made only from long-term units (which qualify after a year of investment).The SWP should be structured such that the aggregate long-term capital gains (LTCG) from listed equity shares and equity mutual funds do not exceed Rs 1.25 lakh in a financial year, thereby remaining within the applicable exemption limit. It is also important to confirm that the units are not subject to any lock-in period or exit restrictions, prior to initiating withdrawals.As per the Income Tax Act, 1961, the interest earned on the Public Provident Fund (PPF) account continues to be fully exempt from tax, regardless of whether a taxpayer opts for the old tax regime or the new tax regime. This exemption flows from Section 10(11) of the Act, which excludes PPF interest from taxable income. While the new tax regime, introduced as an alternative with lower slab rates, requires taxpayers to forgo most deductions and exemptions, it does not withdraw or override this statutory exemption for PPF interest. As a result, the interest credited to a PPF account is not included in total income under either regime. In practical terms, this means that if a taxpayer earns interest on a PPF account during the year, that interest remains tax-free under both regimes.The key difference lies only in the treatment of contributions: under the old regime, contributions to PPF may qualify for deduction under Section 80C (subject to limits), whereas under the new regime, such deductions are generally not available. However, this does not change the tax-free status of the interest itself. Therefore, PPF interest remains exempt from income tax under both the old and the new tax regimes.Our panel of experts will answer questions related to any aspect of personal finance. If you have a query, mail it to us right away. Email ID: etwealth@timesgroup.com