PPF-HUF
This query is : Resolved
16 March 2011
Yes you can open one ppf account in the name of HUF.
17 March 2011
But sir as per NOTIFICATION NO. GSR 956(E), DATED 7-12-2010 HUF a/c in ppf is banned from 13/5/10.
10 August 2024
You are correct that as per the notification dated December 7, 2010 (GSR 956(E)), the provision for HUF accounts in PPF was discontinued from May 13, 2010. This means that HUFs can no longer open new PPF accounts or make contributions to existing PPF accounts after this date.
### **Key Points About PPF for HUFs:**
1. **Discontinuation of HUF Accounts:**
- **Notification Details:** The notification specifically disallowed opening new PPF accounts in the name of HUFs from May 13, 2010, onward.
- **Existing Accounts:** HUFs that had existing PPF accounts before this date could continue to manage those accounts, but no new deposits or fresh accounts could be opened.
2. **Impact on Existing Accounts:**
- **Contributions and Management:** Existing PPF accounts held by HUFs could continue as long as the accounts were opened before the cutoff date. The HUF could make contributions until the maturity of the account, subject to the existing rules.
3. **Tax Benefits and Regulations:**
- **Tax Benefits:** Contributions to PPF accounts are eligible for tax deductions under Section 80C of the Income Tax Act, but this applies only to accounts held by individuals and not HUFs after the specified date.
- **Interest and Maturity:** The interest earned on these accounts and the maturity proceeds remain tax-free.
4. **Current Status:**
- **No New Accounts:** HUFs cannot open new PPF accounts, and the opportunity to invest in PPF through HUF has been closed.
- **Existing Investments:** HUFs with existing PPF accounts should continue to follow the existing rules until the account matures.
### **Summary**
- **HUFs can no longer invest in PPF after May 13, 2010.** New PPF accounts for HUFs have been disallowed, but existing accounts can be managed according to the rules applicable at the time of their opening.
If you have specific concerns regarding existing HUF PPF accounts or need further assistance, consulting a financial advisor or tax professional may provide additional clarity and guidance.
### **Key Points About PPF for HUFs:**
1. **Discontinuation of HUF Accounts:**
- **Notification Details:** The notification specifically disallowed opening new PPF accounts in the name of HUFs from May 13, 2010, onward.
- **Existing Accounts:** HUFs that had existing PPF accounts before this date could continue to manage those accounts, but no new deposits or fresh accounts could be opened.
2. **Impact on Existing Accounts:**
- **Contributions and Management:** Existing PPF accounts held by HUFs could continue as long as the accounts were opened before the cutoff date. The HUF could make contributions until the maturity of the account, subject to the existing rules.
3. **Tax Benefits and Regulations:**
- **Tax Benefits:** Contributions to PPF accounts are eligible for tax deductions under Section 80C of the Income Tax Act, but this applies only to accounts held by individuals and not HUFs after the specified date.
- **Interest and Maturity:** The interest earned on these accounts and the maturity proceeds remain tax-free.
4. **Current Status:**
- **No New Accounts:** HUFs cannot open new PPF accounts, and the opportunity to invest in PPF through HUF has been closed.
- **Existing Investments:** HUFs with existing PPF accounts should continue to follow the existing rules until the account matures.
### **Summary**
- **HUFs can no longer invest in PPF after May 13, 2010.** New PPF accounts for HUFs have been disallowed, but existing accounts can be managed according to the rules applicable at the time of their opening.
If you have specific concerns regarding existing HUF PPF accounts or need further assistance, consulting a financial advisor or tax professional may provide additional clarity and guidance.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Unregistered suppliers utility
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- TDS AND ITR ISSUE
- RATE AND HSN CODE
- EMI ISSUE IN HOUSING LOAN OLD REGIME
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
