Query regarding PPF Account

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  1. Purvee

    Purvee New Member

    Hi All,

    I have PPF account on my name and also I have opened PPF account on my son's name (Minor).

    I am planning to invest ~1 lakhs rupees in each account - my PPF and in my son's PPF account.

    Can anyone tell me will tax be deducted if I invest like this?

    Regards,
    Purvee
     
  2. Neha Sharma

    Neha Sharma Active Member

    The total combined deduction allowed is Rs. 1 Lakh only

    You wont be able to claim more than Rs. 1 Lakh as deduction
     
  3. Purvee

    Purvee New Member

    Thanks for the reply.

    One more thing I wanted to ask is, even if combined deduction is allowed to Rs 1Lakh only - still can I invest 1lakh in my son's account?

    will he get the interest on the amount saved in his account?

    Regards,
    Purvee
     
  4. Neha Sharma

    Neha Sharma Active Member

    As per the PPF Rules,

    "Any individual may, on his behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund (hereinafter referred to as the "Fund") any amount not less than Rs. 500 and not more than Rs. 1,00,000 in a year"

    Therefore, legally you can only deposit 1 Lakh (total) in both the accounts.
     
  5. VAIBHAV DILIP RANE

    VAIBHAV DILIP RANE Active Member

    @Purvee

    PPF is Best Investment beside from Tax prospective...

    You can make Investment for yourself, your family etc.

    You can Invest Min of Rs. 500 and Max of Rs. 100,000 in a year...

    However, for Income Tax prospective; you can get Deductions of Maximum Rs. 1,00,000 under Section 80 C

    The Interest what you will earn on PPF A/c. is totally Exempt (Tax free) from Income Tax.

    Even when you withdraw your PPF A/c. Balance, it is also Exempt.

    Pls Note Any Amt in PPF A/c. get Block for 15 years. But on PPF A/c. you can avail Loan as per rules prescribed.
     
  6. praful

    praful New Member

     
  7. praful

    praful New Member

    As regarding Neha Sharma's comments @4, viz.

    "Therefore, legally you can only deposit 1 Lakh (total) in both the accounts." one can perhaps make it legal by first giving a gift of Rs. 1 lac to the minor kid and then investing the same in his/her PPF a/c. I think this way the rule of only depositing (total) 1 lac can be circumvented .
     
  8. Puran Kumar Batra

    Puran Kumar Batra New Member

    I had opened my PPF account on 1.4.2000 If I pay last contribution on 1.3.2015 can I withdraw whole amount on 1.4.2015
     
  9. Puran Kumar Batra

    Puran Kumar Batra New Member

    I had opened my PPF account on 1.4.2000 If I pay last contribution on 1.3.2015 can I withdraw whole amount on 1.4.2015
     
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