17 June 2009
A PPF ACCOUNT CAN BE OPENED BY AN INDIVIDUAL ON BEHALF OF HUF OF WHICH HE IS A MEMBER. AN INDIVIDUAL CAN OPEN ONLY ONE ACCOUNT FOR HIMSELF. HENCE YOU CAN OPEN A PPF ACCOUNT OF HUF IN THE NAME OF MEMBER OF HUF FOR AND ON BEHALF OF HUF
19 June 2009
GIRISH JI,I THINK YOUR QUERY MAY BE SOLVED WITH FOLLOWING EXPERTS QUESTIONS ANSEWERS Q1.contribute to the PPF account of my eight-year-old daughter. I’m told that following some change in government regulations, I have to close my daughter’s account. Is that true? I don’t want the tax deduction from her account, I just want to make some long-term saving for her. -Bharat Dang, email ANS.The confusion arises because there are two sets of rules governing PPF contributions and the income tax benefits that accrue from it. An amendment to the PPF rules in 2000 barred individuals/Hindu undivided families (HUFs) from contributing to more than one PPF account. The income tax rules, though, are silent on this matter.
Fact is, you can’t contribute to more than one PPF account, even if you don’t claim the tax deduction. You now have two options. You can either close one account or stop contributing to your daughter’s account. If your daughter has some of her own funds, she can use that corpus to contribute to her PPF account. Or, if your wife isn’t already contributing to a PPF account and has some savings or earnings, she can make the deposits in your daughter’s account.
I have two PPF accounts — one in my name and another in my minor son’s name. When I asked SBI, they said I could maintain two accounts. Please clarify. -Nilkanth Khond, Mumbai
Two PPF accounts, one in your name and another in your minor child’s name, are allowed. What’s not allowed is one person contributing to more than one account.
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