Multiple ppf accounts

Tax queries 809 views 3 replies

SANTOSH KUMAR SAHOO

GROUP-A

190 Points Joined January 2012

I am Govt. servant & a tax payer. I do have PPF account.My wife also a tax payer being a businesswomen. She also have PPF account. Both utilised the full benifit of 80C by depositing 1 lakh each . We have two minor children. They do not have PAN and other source of income. Deposit amount may be from either of us or gift from non relatives

Can it be possible to open PPF account in the name of monors?
what is the tax implication?
advatages / disadvantages?
any other possible manner
can I open more than one accounts ? For 2nd PPf account the interest gained can it be shown as my income?

Replies (3)

Mihir

Wealth Manager

5293 Points Joined December 2008

A minor cannot open a PPF a/c. But a minor along with a guardian/parent can open a PPF a/c and on the year of the minor becoming major, the guardian/parent will have to give notice to the bank. One can avail deduction u/s 80C only upto 1 lacs even if one has more than one account. Interest earned is tax-free. Advantage is that the child will be able to use the maturity amount of PPF for his/her education or marriage. And your personal PPF a/c can be wholly used for your personal retirement corpus.