31 January 2024
Hello, I have 2 daughters, my HUF and spouse accounts for PPF, Sukanya samriddhi. so how can I do best tax planning to take full exemption under 80C. 1) father - 1 PPF 2) mother - 1 PPF 3) daughter1 - 1 PPF and 1 SSA 4) daugher2 - 1 PPF and 1 SSA 5) HUF account
in order to take full 80C exemption under 3 accounts- father, mother and HUF for full 1.5Lakhs. whats the best way to plan this.
06 July 2024
To maximize the tax benefits under Section 80C for PPF (Public Provident Fund) and Sukanya Samriddhi accounts for your family members (father, mother, daughters, and HUF), you can consider the following strategy:
1. **Father's Accounts:** - Open 1 PPF account for yourself (father). - Contribute up to Rs. 1.5 lakh annually in this account.
2. **Mother's Accounts:** - Open 1 PPF account for your spouse (mother). - Contribute up to Rs. 1.5 lakh annually in this account.
3. **Daughters' Accounts:** - For each daughter, open: - 1 PPF account: You can contribute up to Rs. 1.5 lakh per daughter per year. - 1 Sukanya Samriddhi Account (SSA): You can contribute up to Rs. 1.5 lakh per daughter per year in the SSA.
4. **HUF Account:** - Open a PPF account in the name of the HUF (Hindu Undivided Family). - Contribute up to Rs. 1.5 lakh annually in this account.
### Total Contribution for Tax Planning: - **Father's PPF**: Up to Rs. 1.5 lakh - **Mother's PPF**: Up to Rs. 1.5 lakh - **Daughter 1**: PPF (up to Rs. 1.5 lakh) + SSA (up to Rs. 1.5 lakh) - **Daughter 2**: PPF (up to Rs. 1.5 lakh) + SSA (up to Rs. 1.5 lakh) - **HUF**: Up to Rs. 1.5 lakh
This plan ensures that each eligible family member (including both daughters and HUF) maximizes the benefit under Section 80C of the Income Tax Act, 1961, by utilizing the full limit of Rs. 1.5 lakh per annum. Make sure to maintain records of contributions and comply with the respective rules and regulations governing PPF and SSA accounts.
CAclubindia
