P.P.F. Deduction in Family Members
This query is : Resolved
13 April 2009
There are 4 Members in my family. Myself, My Father, My Mother & My Father as HUF.
I have PPF A/c in one bank only. no other members have PPF a/c in any other bank.
But we together ie my father, mother, My father as HUF and myself contribute Rs.10000/- each and deposit the amount in 1 PPF a/c by issuing cheque for the same from their respective bank a/c's.
My query is :
If all four family member's income is above the exemption limit, can the claim their respective amount of Rs. 10000/- as deduction U/S 80C while filing their IT return.
Note : Their is only 1 PPF A/c and Total amount deposited iS 10000 x 4 = 40000/-
I have PPF A/c in one bank only. no other members have PPF a/c in any other bank.
But we together ie my father, mother, My father as HUF and myself contribute Rs.10000/- each and deposit the amount in 1 PPF a/c by issuing cheque for the same from their respective bank a/c's.
My query is :
If all four family member's income is above the exemption limit, can the claim their respective amount of Rs. 10000/- as deduction U/S 80C while filing their IT return.
Note : Their is only 1 PPF A/c and Total amount deposited iS 10000 x 4 = 40000/-
14 April 2009
Any one i.e. you, your maother or your father can claim deduction u/s 80c only.
14 April 2009
I desagree with what Mr. Goel said the PPF a/c should be in the name of HUF or Karta in that capacity
15 April 2009
I does Not Agree with above Answer becasue HUF why not Paid the PPF amount for his Member.
because LIP deduction availebal to Parents for His Son,s LIP.
because LIP deduction availebal to Parents for His Son,s LIP.
09 August 2024
In India, the Public Provident Fund (PPF) contributions are eligible for tax benefits under Section 80C of the Income Tax Act. However, there are specific rules about how and who can claim these deductions. Let’s address your queries based on the provided scenario:
### **1. PPF Deduction Eligibility**
**Individual Contributions:**
1. **Ownership of the PPF Account:** The deduction under Section 80C is available to the person who holds the PPF account. In your case, since you have only one PPF account, only you, as the account holder, are eligible to claim a deduction for contributions made to this account.
2. **Claiming Deduction by Family Members:**
- **Deduction for Family Members:** Family members (your father, mother, and HUF) cannot individually claim a deduction under Section 80C for contributions made to your PPF account. The deduction can only be claimed by the account holder (you) for the total contribution made.
- **HUF:** An HUF cannot claim deductions for contributions made to a PPF account unless the account is in the name of the HUF and the contributions are made from the HUF's funds.
### **2. Tax Benefit on Total Contribution:**
**Claim Deduction:**
- **Contribution Limit:** The total contribution eligible for deduction under Section 80C is up to ₹1.5 lakh per financial year per individual. This limit includes contributions made to PPF, ELSS, insurance premiums, and other specified savings.
- **Single Claimant:** In your scenario, since there is only one PPF account, only you can claim the total contribution made to this PPF account as a deduction under Section 80C, up to the maximum allowable limit of ₹1.5 lakh.
### **3. Explanation on Contributions and Tax Benefits:**
- **Single Account Contribution:** Even though multiple family members contributed to the PPF account, the entire amount (₹40,000) deposited into your PPF account can only be claimed by you, as the account holder, as a deduction under Section 80C.
- **Claim for Each Member:** Since the contributions were made to a single PPF account and there’s only one account holder, other family members cannot claim deductions separately.
### **Summary:**
- Only you, as the PPF account holder, can claim the deduction for the total amount deposited in the PPF account.
- Family members (father, mother) and HUF cannot claim separate deductions for contributions made to your PPF account.
- Ensure that you, as the account holder, claim the deduction for the total amount deposited, provided it does not exceed the annual limit of ₹1.5 lakh.
**Additional Notes:**
- Always maintain clear records of the contributions and consult with a tax professional or accountant to ensure compliance with tax laws and proper filing of returns.
If you have further questions or need clarification on specific points, feel free to ask!
### **1. PPF Deduction Eligibility**
**Individual Contributions:**
1. **Ownership of the PPF Account:** The deduction under Section 80C is available to the person who holds the PPF account. In your case, since you have only one PPF account, only you, as the account holder, are eligible to claim a deduction for contributions made to this account.
2. **Claiming Deduction by Family Members:**
- **Deduction for Family Members:** Family members (your father, mother, and HUF) cannot individually claim a deduction under Section 80C for contributions made to your PPF account. The deduction can only be claimed by the account holder (you) for the total contribution made.
- **HUF:** An HUF cannot claim deductions for contributions made to a PPF account unless the account is in the name of the HUF and the contributions are made from the HUF's funds.
### **2. Tax Benefit on Total Contribution:**
**Claim Deduction:**
- **Contribution Limit:** The total contribution eligible for deduction under Section 80C is up to ₹1.5 lakh per financial year per individual. This limit includes contributions made to PPF, ELSS, insurance premiums, and other specified savings.
- **Single Claimant:** In your scenario, since there is only one PPF account, only you can claim the total contribution made to this PPF account as a deduction under Section 80C, up to the maximum allowable limit of ₹1.5 lakh.
### **3. Explanation on Contributions and Tax Benefits:**
- **Single Account Contribution:** Even though multiple family members contributed to the PPF account, the entire amount (₹40,000) deposited into your PPF account can only be claimed by you, as the account holder, as a deduction under Section 80C.
- **Claim for Each Member:** Since the contributions were made to a single PPF account and there’s only one account holder, other family members cannot claim deductions separately.
### **Summary:**
- Only you, as the PPF account holder, can claim the deduction for the total amount deposited in the PPF account.
- Family members (father, mother) and HUF cannot claim separate deductions for contributions made to your PPF account.
- Ensure that you, as the account holder, claim the deduction for the total amount deposited, provided it does not exceed the annual limit of ₹1.5 lakh.
**Additional Notes:**
- Always maintain clear records of the contributions and consult with a tax professional or accountant to ensure compliance with tax laws and proper filing of returns.
If you have further questions or need clarification on specific points, feel free to ask!
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