PPF A/C

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2011 Please help... I have open my personal PPF a/c and my daughter's PPF a/c. There is 70000/ limit to invest in PPF to get 80C deduction.
I want to invest 70000/- to both the account (total 1 lac 40 thousand) i.e
70000/- my PPF a/c and
70000/- my daughter PPF a/c
for any financial year.

Can I invest in above way without considering 80C deduction .

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
Follow

30 June 2011 As per Section 80C PPF limit is overall limit. Hence only 70,000 will be allowed.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2011 https://taxguru.in/income-tax/public-provident-fund-ppf-scheme-investment-limit-income-tax-benefit-features.html
If you read this link it tells that 70000 to PPF is limit set by PPF and not income Tax so one can invest 70K +70K in personal and minor child of his/her only thing will be he will get only 70000 deduction for 80C. please help ....

U S Sharma

U S Sharma (Expert)
Follow

30 June 2011 under the PPF you can "deposit" 70000 for you and 70000 for minor child but interest ceiling would be there on 1st 70000, as the minor child is covered under your guardianship and minor child has no individual income.

to make it better, get an HUF PAN, and from HUF funds, deposit in minor PPF by cheque only, this will unlock the issue, but total in one pan must not exceed 70000

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

01 July 2011 The limit of 70,000/- is for each account and it has got nothing to do with income tax act. As you have not opted to claim 1,40,000/- in income tax you can deposit 70,000 each in both the accounts without any bar provided you are financially sound. This additional 70,000/- you have to either show as a git to your daughter or in your balance sheet you have to show PPF A/C (Daughters name)

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2011 Thanks. I am interested in investing PPF A/c of mine 70000/- and my daughter from my account 70000/- . I have enought LIC deduction under 80C. My CA suggested me to invest daughters PPF from HUF account. I don't understand why I can't. If one has 5 child and 5 PPF, He can invest in all 5 PPF. There is no limit by income Tax on PPF investment. Limit is set by PPF Act not to invest more than 70K / year for an account holder. so I don't think I am violating any IT rules by investing 70K each in mine and my daughters PPF.
Also on balance sheet I will be declaring both PPF a/c and its interest.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

01 July 2011 YES YOU ARE VERY MUCH CLEAR ON THE ISSUE SO GO AHEAD AND BEST OF LUCK. NOW YOU DO NOT REQUIRE ANY ADVICE OR ANY SUGGESTION ON THIS ISSUE.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!

Unanswered Queries