The limit of deposit of Rs. 1,00,000 (Now 1.50 Lakh) in a year by an individual in his self-account and accounts opened by him on behalf of his minor(s) of whom he is the guardian is combined under rule 3 (1) of the Scheme. This limit is separate for account opened by the HUF or an association of persons or body of individuals vide rule 3 (2) of the scheme.
[MOF (DEA) Notification No GSR 908 (E) dated 6.12.2000]
If contributions in excess of Rs. 1,50,000 are made during a year by the subscriber, the deposits in excess of Rs. 1,50,000 will be treated as irregular subscriptions and will neither carry any interest nor this excess amount will be eligible for rebate under Section 80C of the Income Tax Act. This excess amount will be refunded by the Accounts Office to the subscriber without any interest.
[MOF (DEA) letter No F.3(1)-PD/70 dated 24.9.1970 and N.S.C. Nagpur letter No. 12235/Tech/PPF/20-3/98 dated: 20.7.1998]
I also have similar query. If I invest 1.5 L in my PPF + 1.5 L in my kid’s PFF (under minor), so total investment is 3 L.
I understand that I will get only 1.5L tax rebate as per IT rule. My question is, whether I and minor accounts would get interest or interest would be given only on 1.5L and remaining 1.5 L will not yield any interest. Is there any way to withdraw additional contribution if it is not yielding the interest.
rule 3 (1) of the PPF Scheme, AS I KNOW NOR MOST OF THE BANK OFFICER IS AWARE NOR THE SOFTWARE OF BANK IS CALCULATING INTEREST AS PER RULE.
AS I KNOW IF YOU DEPOSITING 1,50,000 IN YOUR INDIVIDUAL CAPACITY AND 1,50,000 IN GUARDIAN OF MINOR SON, IN PFF ACCOUNT, BOTH WILL CARRY INTEREST.
THE IN NOT IMPLEMENTING.
THE RULE ALSO VERY DIFFICULT TO IMPLEMENT, HOW THE BANK AND POST OFFICE CAN TRACK HOW MUCH AMOUNT IS DEPOSITING BY INDIVIDUAL IN HIS OWN CAPACITY AND HOW MUCH IN GUARDIAN CAPACITY
@Sanjay
Yes you can claim,
As per sec 80C(2)(v) read with sec80C(4)(a)(i) two condition must satisfy
1st payment by assessee(i.e, by you)
2nd , for Husband/wife/any child(major and minor both).
So enjoy
sir, can I get tax benifit from my minor son ppf account.
It is wrong information.
For the purpose of Section 80C, the amount deposited in assessee’s own PPF account alone is considered.
There is no over- all ceiling of Rs. 150000 for investment in own PPF account and minor child’s PPF account, e.g. if Mr. A is investing Rs. 125000 in his own PPF account and Rs. 100000 in his minor son’s PPF account, Mr. A can claim the benefit of Rs. 125000 alone under Sec 80C. However, the investment made in the minor son’s PPF account shall fetch interest as per PPF scheme. The ceiling of Rs. 150000 is applicable to each individual PPF account.
I hold a PPF A/c in my name and operate PPF A/cs of my two minor sons separately. I understand that for Income Tax rebate purpose I am eligible for combined benefit of Rs.1,50,000 only. Please clarify that if I deposit 1,50,000 each (1.5 L in my name, and 1.5 L each in the PPF A/c of my two minor sons), will I be eligible to get tax free Interest under all the three accounts separately.
If contributions made in minor’s account are done from bank account of minor, then would this rule be applicable?