In January 1997 I opened a PPF a/c with SBI in the name of my minor son.
I represented the a/c as Father & Natural guardian of my minor son. I used to deposit amount in that PPF a/c and got annual tax rebate for this PPF contribution.
In May 2012 my son became Adult and my role of Father & natural guardian got over. Subsequently my son continued to deposit amount in this PPF a/c from his income and used to get tax rebate u/s 80-c. He extended the account twice with a block of 5 years each time . Finally this a/c got matured in March 2022.
My son did not have any savings a/c in SBI as primary holder. He is having a joint account with his mother and advised the bank to transfer the maturity amount to his mother’s savings a/c ( joint a/c of my spouse and son). Later my wife transferred the entire maturity amount to my son.
Maturity amount of PPF includes investment (me and my son) and interest earned (till May 2012 and post 2012). Since as per rule , both investment and interest earned on PPF is tax free , presume no tax liability accrues to all of them – me , my son and my spouse.
If my son transfers the proportionate amount of matured value to me , is it possible within the current framework of I Tax rules and the transfer amount will be tax-free ?
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