depositing 500 notes in ppf account

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percy (Querist)

19 November 2016 can any one advice if we deposits 500 n 1000 notes of rs 100000 during demonitizibg time in PPF Ac n rs 230000 in saving acs ....is it ok.... will ppf Ac be treated separately or counted as same with savings Ac fr limit of 2.5 lakhs....pl clear..... ADVICE

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

19 November 2016 In my opinion PPF and savings account will be treated as separate since the recent notification and amendment in rules by CBDT mentions cash deposits of more than 2.5 laksh in one or more bank accounts other than current account. Ban account in my opinion should be savings account only and not PPF account. moreover deposit in PPF account is eligible for 80C benefit also therefore there should not be any problem.

percy

percy (Querist)

19 November 2016 bt what abt I.T query part fr amt more than 2.5 lakhs

Shyam Lal Naik

Shyam Lal Naik (Expert)

20 November 2016 In all likelihood, all deposits, whether in Bank, Post Office, pertaining to a PAN shall be aggregated. PPF shall also be come under the purview.

Prakash Kochar

Prakash Kochar (Expert)

21 November 2016 Kindly ref. sect. 115BBE, & sect. 270A. Aggregate amount will be considered as deposit during the period.

Shyam Lal Naik

Shyam Lal Naik (Expert)

23 November 2016 Now, Finance Ministry has said that old notes can not deposited into small savings accounts. Small savings scheme included PPF. Please see the below link Rs 500/1,000 notes not valid for deposits in small saving schemes https://economictimes.indiatimes.com/news/economy/policy/rs-500/1000-notes-not-valid-for-deposits-in-small-saving-schemes/articleshow/55567150.cms

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