27 July 2009
sir i have ppf account in my name and in my wife name.i contribute from my salary in both the account. now i have opened 2 ppf accounts in my minor children name. My tax planning is that i shall contribute 70k in each of this 4 ppf account. and claim rebate of one lacs for 70k contribution in my account. In this way i shall build capital for my children and my wife and be free from clubbing provision as interest of ppf is tax free. Am i right? kindly clarify
at present i am assesse only and claiming rebate of ppf contribution in my account. my query is that can i deposit 70k X 4=280000 in all the account from my current income and claim income tax relief only on my deposit of 70k is this valid?
28 July 2009
my query is that can i deposit 70k X 4=280000 in all the account from my current income and claim income tax relief only on my deposit of 70k is this valid? or legally correct
28 July 2009
sir i have ppf account in my name and in my wife name.i contribute from my salary in both the account. now i have opened 2 ppf accounts in my minor children name. My tax planning is that i shall contribute 70k in each of this 4 ppf account. and claim rebate of one lacs for 70k contribution in my account. In this way i shall build capital for my children and my wife and be free from clubbing provision as interest of ppf is tax free. Am i right? kindly clarify
at present i am assesse only and claiming rebate of ppf contribution in my account. my query is that can i deposit 70k X 4=280000 in all the account from my current income and claim income tax relief only on my deposit of 70k is this valid?
28 July 2009
sir i have ppf account in my name and in my wife name.i contribute from my salary in both the account. now i have opened 2 ppf accounts in my minor children name. My tax planning is that i shall contribute 70k in each of this 4 ppf account. and claim rebate of one lacs for 70k contribution in my account. In this way i shall build capital for my children and my wife and be free from clubbing provision as interest of ppf is tax free. Am i right? kindly clarify
at present i am assesse only and claiming rebate of ppf contribution in my account. my query is that can i deposit 70k X 4=280000 in all the account from my current income and claim income tax relief only on my deposit of 70k
is this valid? In future when my children become major is clubbing applicable. when my wife ppf mature is clubbing comes into play. is this at all legal to have 70k into 4 deposit annually
Expert : CA CS* Prakash Somani (A helping Hand)
Posted On 28 July 2009
Rate This Expert single assessee can not claim more then 70K in PPF
author : manojkumargupta
Posted On 28 July 2009 my query is that can i deposit 70k X 4=280000 in all the account from my current income and claim income tax relief only on my deposit of 70k is this valid?
17 February 2010
sir i have ppf account in my name and in my wife name.i contribute from my salary in both the account. now i have opened 2 ppf accounts in my minor children name. My tax planning is that i shall contribute 70k in each of this 4 ppf account. and claim rebate of one lacs for 70k contribution in my account. In this way i shall build capital for my children and my wife and be free from clubbing provision as interest of ppf is tax free. Am i right? kindly clarify
at present i am assesse only and claiming rebate of ppf contribution in my account. my query is that can i deposit 70k X 4=280000 in all the account from my current income and claim income tax relief only on my deposit of 70k
is this valid? In future when my children become major is clubbing applicable. when my wife ppf mature is clubbing comes into play. is this at all legal to have 70k into 4 deposit annually
17 February 2010
sir i have ppf account in my name and in my wife name.i contribute from my salary in both the account. now i have opened 2 ppf accounts in my minor children name. My tax planning is that i shall contribute 70k in each of this 4 ppf account. and claim rebate of one lacs for 70k contribution in my account. In this way i shall build capital for my children and my wife and be free from clubbing provision as interest of ppf is tax free. Am i right? kindly clarify
at present i am assesse only and claiming rebate of ppf contribution in my account. my query is that can i deposit 70k X 4=280000 in all the account from my current income and claim income tax relief only on my deposit of 70k
is this valid? In future when my children become major is clubbing applicable. when my wife ppf mature is clubbing comes into play. is this at all legal to have 70k into 4 deposit annually
10 August 2024
Here's a detailed explanation addressing your queries regarding Public Provident Fund (PPF) contributions, tax relief, and clubbing provisions:
### **1. Tax Relief on PPF Contributions**
**Contribution Limit and Tax Relief:** - **Individual Limit:** As per Section 80C of the Income Tax Act, a taxpayer can claim a deduction of up to ₹1.5 lakh in a financial year for contributions made to PPF accounts. This limit is applicable to the total contributions made to PPF accounts in the name of the taxpayer, their spouse, and their minor children. - **Contribution to Multiple Accounts:** If you have PPF accounts in your name, your spouse's name, and your minor children's names, the total deduction that can be claimed across all accounts is capped at ₹1.5 lakh per financial year. You cannot claim more than ₹1.5 lakh in total, even if you contribute ₹70,000 to each account.
### **2. Tax Planning and Contribution Validity**
**Contributions to Multiple Accounts:** - **Legal Contribution:** It is legally permissible to deposit up to ₹1.5 lakh per annum in one or more PPF accounts. In your case, if you are contributing ₹70,000 in each of the four accounts (yours, your spouse’s, and your two children’s), you can only claim a total deduction of up to ₹1.5 lakh in a financial year, not ₹2.8 lakh.
**Claiming Deduction:** - **Valid Claim:** You can claim a maximum deduction of ₹1.5 lakh across all PPF accounts, irrespective of the number of accounts. For example, if you contribute ₹70,000 in each of your and your spouse's accounts, and ₹70,000 in each of your children’s accounts, the total deduction you can claim remains capped at ₹1.5 lakh. Any contributions exceeding this amount will not qualify for tax deduction under Section 80C.
### **3. Clubbing Provisions**
**When Children Turn Major:** - **Interest and Withdrawals:** When your children become major, the interest accrued on the PPF account and the principal amount upon withdrawal will not be subject to clubbing provisions, as the funds will be considered their income. Clubbing provisions generally apply to the income of minor children, not to the interest or maturity proceeds of PPF accounts.
**Wife’s PPF Account:** - **Income and Maturity:** The income earned on the PPF account of your spouse is treated as her income. When the PPF account matures, the proceeds will be considered her income. There will be no clubbing of this income with your income.
### **4. Summary**
- **Deduction Limit:** The maximum deduction available for PPF contributions is ₹1.5 lakh per annum, regardless of the number of PPF accounts you hold or contribute to. - **Contribution Validity:** Depositing ₹70,000 each in four accounts and claiming a deduction of ₹70,000 for your account only is incorrect. The maximum total deduction you can claim is ₹1.5 lakh. - **Clubbing Provisions:** Once your children reach adulthood, their PPF account income is not subject to clubbing. Similarly, your spouse’s PPF income is not clubbed with your income.
**In essence, your tax planning should align with the ₹1.5 lakh cap per financial year for PPF contributions. Deposits beyond this limit do not qualify for additional tax relief.**
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