Sanjay Agarwal (MANAGER) (165 Points)
08 January 2011A came across an article, which says that HUF=Whether HUF has been disallowed from Opening PPF a/c since 2005.
Even if the banks are, by mistake or oversight, opening PPF a/c for HUF, accepting contributions, giving credit of interest , such HUF=PPF Ac-holders can be denied interest credit later on. Is it true ???
Pankaj Arora
(Learner)
(3134 Points)
Replied 08 January 2011
No. HUF – ke ppf account 15 years old hain unke f.y. 11 ke baad ppf a/c band ho jayenge
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 08 January 2011
RBI/2004-05/480
Ref.No.CO.DT.15.02.001/H-9844-9866/2004-05
May 25, 2005
Jyeshtha 4, 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 – Clarifications
Please refer to our Circular No.CO.DT.15.02.001/H-9593-9615/2004-05 dated May 14, 2005 forwarding therewith Government of India Notification dated May 13, 2005 issued by Ministry of Finance, amending the provisions of the PPF Scheme, 1968 with effect from May 13, 2005.
2. In this regard, Government of India, Ministry of Finance vide letter F.No.2/8/2005-NS-II dated May 20, 2005 have, inter alia, issued the following clarifications :
i) Sequel to amendments to various Small Savings Schemes to restrict the scope of investments only to individuals, the accounts, if any, opened by juristic persons (HUFs, Trusts, Provident Funds, etc.) i.e. persons other than individuals (through single or joint accounts or deposits by guardians on behalf of minors and persons of unsound mind as per rules) on or after May 13, 2005, under any of the small savings scheme including Public Provident Fund Scheme, 1968, shall be treated as void ab initio and immediate action should be taken to close such accounts and to refund the deposits without any interest to the depositors.
ii) It may, however, be noted that the above amendments shall not be applicable to the existing accounts opened in accordance with the rules in operation prior to the amendments dated May 13, 2005. These shall continue till maturity and deposits/withdrawals in/from these accounts shall be allowed to be made in accordance with the said rules. However, any extension of existing accounts shall be subject to the amendments dated May 13, 2005.
3. In view of the above, you may please issue suitable instructions to all your designated branches / offices operating the PPF Scheme, 1968 and ensure strict compliance with the same.
4. Please acknowledge receipt.
Yours faithfully,
(D.Rajagopala Rao)
Deputy General Manager
Sanjay Agarwal
(MANAGER)
(165 Points)
Replied 08 January 2011
Thanks Mr. U S Sharma for the circular.
This means the banks still opening PPF a/c for HUF are not doing the correct the thing.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 08 January 2011
such accounts will not exist, end of year banks will not be position to credit interest and hence they will ask the party to close the account.
Sanjay Agarwal
(MANAGER)
(165 Points)
Replied 08 January 2011
SO THE TAX SAVING OPTION THRU HUF I S NOW NOT AVAILABLE.
WHAT OTHER MEANS OF TAX SAVING THRU HUF ???
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 08 January 2011
except PPF and savings through Post office, ( NSC etc) balance all deductions of 80C are still valid for HUF, viz ELSS, SIP, LIC premium ( for members only)
CA MAULIK
(C.A)
(937 Points)
Replied 12 January 2011
HUF cant open it..if banks are still doing dat,,its wrong.................interest loss to the huf
CAclubindia
