Query on PPF Account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2010 I wish to open PPF account in my 2 children's name (both minors) with a bank. SBI.
My query is:
1) Can I open 2 PPF accounts - one each in my child's name?

2) If yes, can I contribute towards the PPF accounts of my children out of my 'HUF account' (where I am the Karta) and avail benefits of section 80C deduction for my HUF ITR filing? Please also let me know what is the amount of contribution I can make to avail maximum tax benefit.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

20 August 2010 1) Yes you can
2) No you can not claim 80Deduction in HUF A/c but you can claim it in your ITR if you pay the contribution from your Account.
Maximum Limit Rs 70000/- p.a. In PPF.

Message likes : 1 times

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

20 August 2010 1. Yes
2. No deduction will be available to the HUF.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

20 August 2010 No ppf amount can not be deposited from huf account
RBI CIRCULARS AND CLARIFICATION RESTRICTING OPENING OF NEW ACCOUNTS IN THE NAME OF HUF
Public Provident Fund Scheme, 1968 – Amendments
RBI/2004-05/468
Ref.No.CO.DT.15.02.001/H-9593-9615/2004-05
May 14, 2005 Chaitra 23, 1927 (S)
The General Manager Government Accounts Department
State Bank of India and Associate Banks ;
Allahabad Bank / Bank of Baroda / Bank of India /
Bank of Maharashtra / Canara Bank / Central Bank of India /
Corporation Bank / Dena Bank / Indian Bank /
Indian Overseas Bank /Punjab National Bank / Syndicate Bank / UCO Bank / Union Bank of India / United Bank of India /
Dear Sir,
Public Provident Fund Scheme, 1968 – Amendments
We forward herewith a copy of Notification No.G.S.R.____(E) dated May 13, 2005 issued by Government of India, Ministry of Finance, New Delhi amending the provisions of the Public Provident Fund Scheme, 1968 as under:
i. in paragraph 3, sub-paragraph (2) shall be omitted;
ii. in paragraph 12, in sub-paragraph (1), the Note shall be omitted;
iii. in Form A -
a. for the heading ‘ACCOUNT IN THE NAME OF SELF/MINOR(S)/HUF/ASSOCIATION’, the heading ‘ACCOUNT IN THE NAME OF SELF /MINOR (S)’ shall be substituted;
b. in paragraph (ii), the words ‘or a Hindu Undivided Family or an Association of persons’ shall be omitted;
c. in paragraph (iii) in the details; S.Nos. 3 and 4 and the entries relating thereto shall be omitted;
d. in paragraph (iv), the sub-paragraphs (b) and (c) shall be omitted;
e. ‘Note 1′ shall be omitted.
2. These amendments to PPF Scheme 1968 have come into force with effect from May 13, 2005. You may please issue suitable instructions to all your designated branches/offices authorized to operate the PPF Scheme, 1968. The amendments may also be displayed on the notice board by the above branches/brought to the notice to PPF account holders.
3. Please acknowledge receipt.
Yours faithfully,
(D.Rajagopala Rao)
Deputy General Manager

Message likes : 2 times