PPF account opened by NRI for Resident Child

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  1. Ashish Masand

    Ashish Masand New Member

    Hi,

    I would like to clarify if a NRI parent opens a PPF account for a resident child and makes investment in the minor childs PPF account, will he/she be eligible to claim deduction under 80C fr this investment.
     
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Yes.
    NRI is not permitted to open PPF A/c.But NRI can claim deduction U/s 80C if he invests in PPF A/c, in the name of his child (Minor (or) Major)
     
  3. Ashish Masand

    Ashish Masand New Member

    Under which section of the Income tax is this clarification given Alternativey is there any case law supporting this stand of NRI investment in minor child PPF,deduction claimed under 80C
     
  4. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Iam saying, even if NRI opens PPF A/c and makes investment ,he can claim deduction u/s 80C.
    S.80C(2)(v) of the Income Act 1961 says, deduction is available to individual( whether NRI (or) not),if he makes investment in PPF.
    Opening PPF a/c by NRI is violation as per the provident Fund act but not as per the Income tax act.
    And so it is obvious that, if parent(NRI) makes investment in PPF A/c of his child (minor (or) major),he can claim deduction u/s 80C.Because child is relative specified in S.80C(4)(a)(i).
     
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