Ppf interest income of minor

This query is : Resolved

ARTHI (Querist)
Follow

27 August 2014 Dear Experts,

Kindly reply to the following queries:

PPF Interest is exempt.

However, whether the minor child's Income by way of Interest from PPF Investment is EXEMPT while clubbing with the income of the Father.

Please confirm.

Thanks a lot.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

27 August 2014 Yes. Interest earned on PPF investment of Minor child is also exempt from tax.

ALOK GOEL

ALOK GOEL (Expert)
Follow

28 August 2014 and either of parents can claim this exemption.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

28 August 2014 Parent with whose income the income of Minor is being clubbed can claim the exemption.

Rupesh Jain

Rupesh Jain (Expert)
Follow

29 August 2014 income of son include in income of father or mother which have higher income.

ALOK GOEL

ALOK GOEL (Expert)
Follow

29 August 2014 Let me correct here. He there are 2 issues :

1. Contribution in PPF from Father in the name of son 2) Interest income investment .

Clarifications are here under:

1)) For PPF , If contribution for minor son or daughter coming from father then Father is to claim the exemption and if mother has contributed then Mother will claim exemption in her return.

There is no provision of higher and lower income criteria in IT act for this exemption claim.
2) Interest income of son -investment in PPF -- same way exemption available as mentioned above point no. 1

or

If interest income from PPF invested outside PPF , then that money is taxable under the head of income from other sources for father or mother whosoever contributed.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

29 August 2014 Father and Mother criteria as stated aboveis for clubbing purpose and not for claiming exemption.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

29 August 2014 What if both Father and Mother has contributed?

ALOK GOEL

ALOK GOEL (Expert)
Follow

29 August 2014 Proportionate to interest earned on their contribution and invested outside PPF is taxable separately.

Hope this clarify the issue .

Message likes : 1 times

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

31 August 2014 https://www.incometaxindia.gov.in/publications/1_Compute_Your_Salary_Income/5_Clubbing_of_income.asp

https://blog.cleartax.in/clubbing-of-income-under-income-tax-act/

https://www.simpletaxindia.net/2012/07/clubbing-of-income-individual-section.html

Requested to check out above links.

Message likes : 1 times

ALOK GOEL

ALOK GOEL (Expert)
Follow

31 August 2014 The links are useful for understanding on "clubbing of Income of Minor etc " for IT purpose.

Thanks.

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Leena Rachh

RISHI LATTA

Dhananjay Singh

shubham agrawal

N N V Satish

Subscribe Now

Ppf interest income of minor

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

Accountant

GST CONSULTANCY

GST CONSULTANT

Article Assistant

CA Final

Senior execiutive