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PPF exemption u/s 80c

shruti (student) (23 Points)

02 March 2021

Will I get tax benefit u/s 80c, if I deposit money in my spouse's PPF account?

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5 Replies

Kapadia Pravin (17249 Points)
Replied 02 March 2021

No.
spouse will get benefit

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 02 March 2021

Spouse will get benefit

shyam singh (11 Points)
Replied 02 March 2021

Under Section 80C of the Income Tax Act, 1961 Public Provident Fund (PPF) is one of the best options that is entitled to the tax advantage. PPF contributions filed by the self or on the behalf of the minor child for Rs 1.5 lakh per financial year eligible for the deduction in the hands of the person. But PPF deposits filed on the year might not be permitted for the tax advantages unless the PPF extension rules are to be followed. According to the PF account rules, if the PPF subscriber posts the expiry of 15 years of PPF policy unable to practice the choice for carrying on the account with the deposits, the tax advantage beneath the section 80C is not get implemented.

A PPF is a 15-year policy scheme in which you can close down your account or carry it on. So to close down the PPF account the account holder is urged to apply for Form 3. The closure can be executed anytime after 15 years and the whole balance along with the left interest within the last month date preceding the month where the money can be withdrawn.

But if the owner of the account wants to continue the PPF account post 15 years including the fresh deposits this is needed to be reported to the accounts office in 1 year. So to prolong the PPF account in the block of 5 years engaging with the fresh deposits the account owner is needed to furnish Form 4.

anil jain (Partner) (1067 Points)
Replied 02 March 2021

(v) as a contribution to any provident fund set up by the Central Government and notified by it in this behalf in the Official Gazette, where such contribution is to an account standing in the name of any person specified in sub-section (4);

(4) The persons referred to in sub-section (2) shall be the following, namely:—

(a) for the purposes of clauses (i), (v), (x) and (xi) of that sub-section,—

(i) in the case of an individual, the individual, the wife or husband and any child of such individual, and

(ii) in the case of a Hindu undivided family, any member thereof;