Income tax on fd interest and ppf account combined.

Any sum of money or property received by an individual or HUF in the following circumstances shall not be chargeable to tax:

a) Gifts received by an individual from his relatives;

b) Gifts received by an HUF from any of its Member;

c) Gifts received by an individual on occasion of his/her marriage;

d) Gifts received by an individual or HUF under a will or by way of Inheritance;

e) Gifts received in contemplation of death of the payer;

f) Gifts received from any local authority;

g) Gifts received from any fund, foundation, university, educational institution, hospital, medical institution, any trust or institution referred to in Section 10(23C);

h) Gifts received from any trust or institution registered under Section 12AA.

** ‘Relative’ shall mean:

1. Spouse of the individual

2. Brother or sister of the individual

3. Brother or sister of the spouse of the individual

4. Brother or sister of either of the parents of the individual

5. Any lineal ascendant or descendant of the individual

6. Any lineal ascendant or descendant of spouse of the individual

7. Spouse of the person referred in point 2-6 above

So if he get the money from the above mention relatives then it would not be taxable in his hand.

Secondly, if person does not has any other income except Rs. 1.5 lacs then no need to invest in PPF for tax saving as tax slab for the F.Y. 2015-16 is 2.5 lacs.

Thank you Mr. Goenka for the reply.

He will receive money from his family members from the list you have given. My friend wants to save money for his future, so he wants to open ppf account not for the sake of saving tax.

So he can get the benefit of 15g as his total income is 1.5 lacs and also he can deposit 1.5 lacs which he recieves from his family and it will be exempted.

Yes, you are right, he can do the same.

Thank you for the information Mr. Goenka.

Mr. querist, if he will receive money from otherthan his family members as enlisted hereinabove and your friend deposit into ppf account, he will get income deduction of 1.50 lacs u/s. 80C of the Act, He won't be liable to income tax as his resultant income would be again 1.50 lacs that is below exemption limit.

So, 80c will apply for money taken from family and 15g can also be claimed, so no income tax is paid.

Thank you for the information Mr. Dileep Kumar.

AGREE WITH ABOVE

Agree with my reply Mr. Ramanuj?

PPF interest is exempt from income tax and hence question of clubbing does not arise.

The money recceived should be by cheque.  If you put cash of 1.5 lakhs in PPF then it will come in  26AS in AIR and you will receive  notice from IT dept. 

See that 1.5  lakh is received from relative which is taxed income.

If the money  is received from taxed income  then filing 15G is correct

If if it otherwise than (say expense/salary ) to you then  ur income is 3 lakhs though no tax will  there though you have to file IT return and take TDS from Fd and  1.5lk exemption under 80C. .

Originally posted by : VIKAS SHAH
	PPF interest is exempt from income tax and hence question of clubbing does not arise.

Thanks for the information Vikas.

Originally posted by : S. Shiroor
	The money recceived should be by cheque.  If you put cash of 1.5 lakhs in PPF then it will come in  26AS in AIR and you will receive  notice from IT dept.  See that 1.5  lakh is received from relative which is taxed income. If the money  is received from taxed income  then filing 15G is correct If if it otherwise than (say expense/salary ) to you then  ur income is 3 lakhs though no tax will  there though you have to file IT return and take TDS from Fd and  1.5lk exemption under 80C. .

Thank you for the information Shiroor.

We want to transfer the money from the relative's account through Net banking. It is taxed income, the relative pays tax.

Originally posted by : R.K.LANGOTE
	If individual received gift money from father or mother,then?

Father, mother, brother, sister can give money, it is not considered as income, it is a gift.