Income Tax on Interest on PPF Account earned by Minor

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  1. saroj prusty

    saroj prusty New Member

    if a parent is having an ppf account in the name of minor, and another one in his own name

    interest income from own ppf acc is not taxable at the end of 15yrs. But

    then interest income from minor ppf account how is taxable at the end of 15 yrs as per incometax rules ?
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, the interest earned on PPF Account whether on own name or on the name of minor son is exempted.

    However, please note that the max amount that can be deposited every year in PPF Account is Rs. 1.5 Lakhs only

    This max limit is sum total of amount invested in your own name + amount invested in your minor child's name
     
    saroj prusty likes this.
  3. gaurav_kumar

    gaurav_kumar Well-Known Member

    The interest earned on ppf account in the hands of your minor son is exempted from the levy of income tax
     
    saroj prusty likes this.
  4. saroj prusty

    saroj prusty New Member

     
  5. saroj prusty

    saroj prusty New Member

    Thanks Mr Gaurav Kumar For your kind reply.
    If sum of both ppf acc is max of 1.5 lakhs only then no point in opening an ppf acc in minors name. We can keep minor as nominee.
    Can we close the ppf account of minor. If we cannot close what is the alternative solution.
     
  6. gaurav_kumar

    gaurav_kumar Well-Known Member

    The tenure of PPF Account is 15 years and PPF Account cannot be closed before the tenure of 15 years.
     
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