HUF PPF Contributions: Claim 80C Deduction?

Hello Sir / Madam,

Can an HUF claim deduction u/s 80C for contribution made to PPF account of any of its member?

i came across one article on ET where Senior Chartered Accountant, has answered this

https://economictimes.indiatimes.com/wealth/tax/tax-queries-can-an-huf-claim-deducthas answered this

"Deduction u/s 80C of the I-T Act is eligible to individuals and HUFs. However, PPF account in the name of HUF is no more permitted as clarified by ministry of finance vide notification no GSR 291(E) dated May 13, 2005. In order to claim deduction u/s 80C, HUF can contribute to the PPF account of its members and claim tax deduction."

So can we claim PPF contribution under 80C in HUF ITR ?
and if not then can HUF contribute of members PPF even if doesnt want to claim under 80C?
and if the Member is Minor then the answer remains the same?

Thanks in Advance for your reply.

AK Khandelwal

Deduction u/s 80C of the I-T Act is eligible to individuals and HUFs. However, PPF account in the name of HUF is no more permitted as clarified by ministry of finance vide notification no GSR 291(E) dated May 13, 2005. In order to claim deduction u/s 80C, HUF can contribute to the PPF account of its members and claim tax deduction.

Read more at:
https://economictimes.indiatimes.com/wealth/tax/tax-queries-can-an-huf-claim-deduction-u/s-80c-for-contribution-made-to-ppf-of-its-member/articleshow/65498372.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

AK Khandelwal

Can an HUF claim deduction u/s 80C for contribution made to PPF account of any of its member?

Not for new PPF contributions:

• An HUF can't open a new PPF account (since 13 May 2005). Old HUF PPF accounts couldn't be extended beyond maturity.

• Contributions by an HUF into a member's individual PPF account: Sec 80C(2)(iv) and 80C(4)(b) allow PPF contributions "in the case of an individual, in the name of the individual, spouse or child" and "in the case of an HUF, any member". The tax law text still allows an HUF 80C deduction for a PPF deposit in a member's name.

• But under the PPF Scheme 2019, deposits into an individual's PPF account must come from the account holder. Third-party (HUF) deposits aren't contemplated. So in practice, banks may accept the deposit as from the member, and the HUF claim is weak.

• Safer 80C options for an HUF: life insurance premium for members, ELSS investment, principal repayment of an HUF home loan. Old regime only.