Dear Sir,
I have a PPF account in post office & I have opened another ppf account on the name of my daughter's when she was minor in the same post office 14 years back.
Now, she is major (from 2008) & account has been transferred on her name last year (2011). I have been investing full amount of Rs 70000/- each in both these accounts, all these years and was accepted by post office till this year.
I have been claiming tax benefit only for my account.
However, now post office is suggesting me that this investment in my daughter’s account is invalid as per their latest audit findings.
They further informed me that the interest paid so far for all payments in my daughter's account is liable for recovery.
Is this correct ?
Post office has already started calculations of recovery. Both pass books, mine & my daughter's are with them since last one month. I am awaiting their formal letter.
Please advice what to do ?
Regards
APJ
CAclubindia
