Can someone help on PPF a/c distribution. As per my understanding PPF is open for individual and distribution is consider to be individual irrespective of Minor / HUF/ Self . and Max linit to invest is 70000/ year.
So if I invest 70000 in self PPF and 70000 in Minor. Will there be any problem. ? only thing that will be U/s 80c deduction allowed max is 70000/ year. also interest earned on both account are clubbed but will be consider tax free.
plese correct
Thanks
Dear.....
1) As per U/s 64(1A) ,Interest on PPF investment ( Minor A/c ) will be included in the income of his / her father , mother or parents. Such income is expemt u/s 10 in the hand of father , mother or parents.
2) 80C : Max. limit for PPF is Rs 70000/-. Investment of Minor under PPF a/c( if paid by assessee) can be considered up to Rs 70000 only. But here He has allready invested Rs 70000/- under PPF A/C .
Ok........................ Please ref Note No 4 & 6 , Page No 631 para No 235.2 of Direct Tax of Dr Vinod Singhania
Thanks. But still not clear
Will it be any issue if 70000 is invested in self PPF and 70000 invested in minor PPF , just leave apart issue of exemption limit for 80 c . I mean total 140000 invested in PPF (self+minor) but only 70000 will be allowed as exemption.
Viki
Yes you can deposit as much amount as you want.. no probelm in tht. There is restriction only for deduciton for 80C.
Also if you are salaried person than can contribut to VPF. For such you can claim deduction upto 1 LAc.....
CAclubindia
