Contribution to PPF

Dear,

To my mind the Limit of 70000/- is set for Single Account & contribution of HUF will not be allowed as deduction. However i do not have any authoritive references to confirm the same

Thanks & Regards,

Sunil Kotak

 

 

 

RBI vide its circular :

RBI/2004-05/468
Ref.No.CO.DT.15.02.001/H-9593-9615/2004-05 dt.14/05/05

has issued clarification restricting opening of a new account in the name of HUF.

Therefore for claiming deduction u/s. 80C HUF has to subscribe to the PPF A/c of its Karta or any of its coparceners

Agree with sunil sir,

Maximum deposit in a FY ina single account is Rs. 70,000/- {Rule 3 of PPF Scheme 1968}

https://www.indiapost.gov.in/POSBActs/PPFRules1968.pdf

 

HUF can take benefit on deposit of sum in the name of any member or Karta .—Circular No.405 [F No. 178/1/84-IT(A-I)], DATED 15-1-1985 as corrected by Circular : No. 418 [F. No. 178/1/84-IT(A-I)], dated 2-5-1985.

Hi Thanks for your prompt replies. Rule 3 of the Scheme specifically allow contribution in two capaciies, viz., one as an individual and another as member of HUF. It is true that no fresh PPF account can be opened in the name of HUF. As I am already a member of one I can contribute to this account from HUF funds/books. The point here is maximum deposit by an individual is Rs.70000 from his accounts and maximum deposit by an HUF is Rs.70000 from its accounts. I do belive the maximum amount could be Rs.1,40,000/- in one account unless there is a specific bar somewhere. Thanks and Regards, Venkat