PPF Investment for Minor

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This discussion explores how to invest in a Public Provident Fund (PPF) account for a minor, considering the annual contribution limit of Rs 1.5 lakh. The original poster is seeking ways to contribute to their daughter's PPF without exceeding this limit, even when considering their own and their wife's investments. Several options are discussed, including direct contributions, using HUF accounts, and receiving gifts from grandparents, with a focus on how these interact with the 80C deduction and the overall PPF limit. Ultimately, the conversation shifts towards the Sukanya Samriddhi Yojana (SSY) as a potential alternative for minor investments.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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23 March 2023 Hi,
I and my wife are salaried individuals investing 1.5 L yearly in PPF and taking deduction under 80C. We have 2 year old daughter. I want to open a PPF account for daughter, considering that i know that the total contribution of me and my daughter is limited to 1.5 L total, how to invest in PPF of daughter (minor):
1. I contribute 1.5 L to my wife's PPF, my wife contributes 1.5 L to my PPF, and i also contribute 1.5 L to the minor's PPF, making a cumulative investment of 4.5 L, and thus not breaking the upper 1.5 L contribution limit.
2. I open a HUF account, and contribute 1.5 L to the minor's PPF account as she will be member of my HUF. Take 80C claim in HUF. (But, i have heard, by this method also the maximum limit of 1.5L is broken as the minor is under my guardian ship only, and also that 80C deduction is not available to HUF for member's PPF contribution).
3. Minor's grant-parents are willing to gift her money. The money attained as gift in minor's account can be used to her PPF contribution. 80C will not be available, but 1.5L limit of PPF will not be crossed.
Please guide.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 March 2023 Plan based on the fact that Total contribution (by whomsoever be), should not exceed Rs. 1.50 lakhs in your PPF account and your minors' account/s where you are guardian, summed together.

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Ankur Aggarwal

Ankur Aggarwal (Querist)
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23 March 2023 As per your suggestion, it seems that none of the above option works. I will then do investment in Sukanya Smriddi Yojana (SSY) for the minor. I hope PPF and SSY are different schemes and the cumulative 1.5 L thing does effect them.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 March 2023 Correct, that is what I intended to say.
Secondly, check if HUF can invest in SSY and claim 80C exemption; otherwise check different option.

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