PPF Guide

The declaration in the account opening form of PPF is — “I shall adhere to the ceiling on deposits as provided for by Central Government from time to time, which is Rs 70,000 in a financial year at present together in an individual self account and account(s) on behalf of minor(s) of whom I am the guardian. In case, at any time, the said declaration is found untrue/false, no interest shall be payable to me/the subscriber on the amount of deposits found in excess of the prescribed limit.” This implies that the ceiling on the aggregate contributions is Rs 70,000 to accounts of self and all minor children… Even if an individual who is not a guardian, say the grandfather, contributes to the account of the child, but the rule of clubbing in the hands of the parent is applicable. As per ITA, contribution made for the purposes of clauses ‘i’ (LIC), ‘v’ (PPF), ‘x’ (ULIP of UTI) and ‘xi’ (Dhanaraksha of LICMF) (i) in the case of an individual, the individual, the wife or husband and any child of such individual, and (ii) in the case of a Hindu undivided family, any member thereof. is eligible for deduction u/s 80C.

hi sobergal, As regards to ur query, i want to tell u that SEc.80C(2)(iv) provides the deduction of ur payment to the provident fund and SEc.80C(2)(v) provides the deduction of the payment made by u for ur family member, which is already defined by Mr. Daga in his reply above. And the maximum deduction in SEc.80c is Rs.100000 and for PPF is Rs.70000 including payment by u for u and any of ur family member.