Ppf and tax deduction

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sherryl (Querist)

09 August 2014 Dear Sir / Madam,
Both me and my husband residents and are earning and filing our tax returns separately on time.

My question is if my husband gives me Rs 100,000 as gift and I invest this in my PPF account can I claim 80C tax benefits for the AY?

Will my husband be taxed on income from this investment?

Please kindly clarify my query.

Kind Regards
Sherryl

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

09 August 2014 Yes you can take Rs 1 lac as Gift and invest the amount in PPF to claim deduction u/s 80C. You will get the dedution. Question of taxability does not arise since interest from PPF is exempt from Tax.

Rupesh Jain

Rupesh Jain (Expert)

09 August 2014 YOU can GET GIFT FROM Husband and its tax free and intt. on PPF is exempt form income tax.

sherryl

sherryl (Querist)

14 August 2014 Sanjay,
Thanks for your clarification. It helps us a lot for salaried class people like us.

While making a monetary gift of Rs 100,000 to me, does my husband need to prepare any document.

Please let us know what is the procedure.

Thanks again
Sherry

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

14 August 2014 Yes. It is advisable to get a gift deed executed

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