How to treat India PF & PPF interest for US tax filing?

[Dun021]

I have India PF and PPF accounts which of course generate yearly interest which is exempt from taxation in India (there are no withdrawals). I heard somewhere that this interest will be taxable in US. Can someone in the same situation clarify if this is true? I also read that some people treat PF/PPF as comparable to social security and thus avoid US taxation on interest/withdrawals. Is this legal? Request anyone in similar situation to please help.

Also, if my income in India (interests, dividends etc) is less than 2.5 lakhs and therefore tax exempt in India, do I need to pay taxes on this income in USA?

Thanks in advance!