Ppf for minor child

Tax queries 432 views 4 replies

Bijo

65 Points Joined March 2012

Is it allowed to open a PPF account for a minor child?

Given interest from Sukanya Samriddhi Yojana account is taxable, I am considering to stop invesing in Sukanya Samriddhi Yojana account of my daughter and instead open a PPF account on her name.

As I will be depositing to the new PPF account on her behalf, I believe I can claim tax exemption for the deposited amount (under 80C) and I will have to declare the interest income from that in my tax returns. Please let me know if that's not the case. Would the interest from that PPF account still remain tax exempted for me even though it's deposited and earned in the child's account?

Thank you for any relevant responses.

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211454 Points Joined July 2016

"Is it allowed to open a PPF account for a minor child?"

Yes......... definitely allowed... Total investment PA in all the accounts should not exceed 1.50 lakhs.

The interest accrued on PPF investment is totally tax free; but you cannot invest more than 1.50 lakhs in aggregate in your account, including that of your daughter.

Bijo

65 Points Joined March 2012

Thank you for the response. Also, can I claim tax exemption under 80C for the amount deposited in daughter's PPF account?

Originally posted by : Dhirajlal Rambhia
	you cannot invest more than 1.50 lakhs in aggregate in your account, including that of your daughter.

Do you mean, I can not invest more than 1.50 lakhs combining my account and my daughter's account? Or is it that the combined limitation of Rs.1.50 lakhs is applicable only for claiming tax exemption under 80C while I can deposit Rs.1.50 lakhs in each of the accounts (totalling Rs.3 lakhs)?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211454 Points Joined July 2016

1. Yes........ you can not invest more than 1.50 lakhs combining your account and your daughter's account?

2. Also.......that the combined limitation of Rs.1.50 lakhs is applicable for claiming tax exemption under 80C, aggregate of all the investments that can be claimed.