18 April 2009
Sir, Our client has invested Rs.50000 in PPF a/c in his own name and Rs.50000 in his wife's PPF a/c. Now, I would like to know whether he ll get deduction u/s 80C for Rs.50000, 70000 or Rs. 100000 in respect of this transaction.
18 April 2009
In view of the notification the individual may claim deduction for deposit of PPF in the name of self, spouse or children. There is no limit for deposit in the Income Tax Act. However, the limit as per PPF Scheme, 1968 is 70000. Hence, the individual may claim the amount of Rs. 100000 as deduction u/s 80C.
THE TEXT OF NOTIFICATION IS AS PER UNDER:
533A. Notified Provident Fund under section 80C(2)(v)
In exercise of the powers conferred by clause (v) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Public Provident Fund, established under the Public Provident Fund Scheme, 1968, for the purposes of the said clause for the assessment year 2006-07 and subsequent assessment years.
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