Deduction on ppf
Querist : Anonymous
PPF investment is 100% tax free.
I decide to make an investment in PPF for myself and my mother for Rs.100000 each annually.
As known i can claim tax exemption for my investment in PPF to the limit of Rs.100000 u/s 80C.
Can my mother claim deduction u/s 80C too even if she has low source of income, e.g she earns Rs.20000 annually?
The payment is made by me and not by my mother.
If not then will the investment of PPF in my mother's name will become taxable and to whom? If yes the what will be the tax rate?
Instead of my mother i decided to make investment in my child's name of Rs.100000.
Now he has no source of income. Will the complete investment be taxable to me?
Please provide your insight.
Querist : Anonymous
You mean to say that the PPF i open in my parents/children's name will be exempt from tax if i am able to explain the source of Income from were i am making the investment.
I am a bit confused over here.
Maximum deduction u/s 80C is Rs100000.
Then how can the PPF payment by me in my child's/parents name is exempt.
Who enjoys the benefit of exemption?
Querist : Anonymous
Please explain is there any minimum age to open a PPF account?
Also will the usage of PPF amount after its maturity will decided its taxability.?
E.g-After maturity of my child's PPF i get Rs.1000000. Out of which i use Rs.6lacs for his educational purpose and the rest for i use it for house renovation. Will the 4lacs become taxable.
The amount received on maturity of PPF is not taxable at all. After receiving the amount if some income is earned after investing that amount, then that income only is taxable.
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