PPF contribution in minor account by HUF

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This query is : Resolved

VIKAS R BANTIA (Querist)

07 January 2023 " If a HUF contributes to one of the minor’s PPF account, does the contribution amount gets added to the guardian’s PPF contribution whose PAN is present in the minor’s PPF account?

HUF is not allowed to open a PPF account under its name. But, it is allowed to contribute to the PPF account for any of its members and claim the deduction under section 80C of the income tax law.

If the contribution is made towards a minor member, it will be considered as the contribution of the parent who is the guardian in the minor’s PPF account."

The above point was found on internet. I wanted to open a PPF A/c of my minor kids and the contribution amount to be made by my HUF account . If suppose I invested Rs:-150000 in my personal PPF account from my personal SB A/c & Rs:- 150000 from HUF account to minor kids PPF a/c of whom I am the guardian ( Since HUF cannot be a guardian) and my PAN number is mentioned in minor A/c. In the above case can HUF claim deduction u/s 80C of Rs:-150000 and myself claim deduction of Rs:- 150000 Totally Rs:- 300000 ? or I can totally claim and get interest for only Rs:-150000 in both accounts. Kindly guide

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 January 2023 HUF is not allowed to invest in PPF directly, nor allowed for deduction u/s. 80C for any contribution in PPF accout/s.
If you (from HUF acc) invest in minor's PPF account it will be treated as the investment by gardian of minor, where the 1.50 lakhs cap will apply. So, maximun investment by an individual in his own account or aggregate of all such PPF accounts cannot exceed 1.50 Lakhs...

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