24 June 2010
If the income of a minor child is clubbed in the hands of his parents then will the amount of ppf paid from the bank account of the minor be allowable in the hands of his parents???? will the gross income or net income of the minor be clubbed with the parents????
25 June 2010
BANSAL JI RS.70000/- IS APPLICABLE FOR INDIVIDUAL ACCOUNT. THE ASSESSEE CAN CLAIM 80C DEDUCTION ON ACCOUNT OF PPF DEPOSIT UPTO RS. 1 LAC SUBJECT TO INDIVIDUAL LIMIT OF RS. 70000/- SAY, RS.50000/- IN MINOR ACCOUNT AND RS 70000/- IN HIS FATHERS ACCOUNT. DEDUCTION AVAILABLE U/S 80C WILL BE RS.1 LAC.
25 June 2010
Tax Benefits: Public Provident Fune (PPF) Interst is completely exempt from income-tax u/s 10(11). The deduction u/s 80C is available on the total contribution of PPF, LIC, ULIP. etc. up to a maximum of Rs. 1,00,000(Only Rs.70,000 is eligible deduction for PPF).
Interest on public provident fund is not treated as reinvestment for purpose of section 80C as it is tax free and does not form part of taxable income.
Out of Rs.100000 dedution, he can only take deduction on account of ppf Rs.70000/- it is limit of dedcution for one person. now whether he has deposited Rs.70000/ in his son/ wife etc. but he get Rs.70000/- deduction as whole.
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