The annual deposit limit of Rs. 1.50 lakh is
applicable whether you wish to claim the benefit under Section 80C or not for
contribution made to the PPF account of your child.
Question :
We both the spouses are taxpayers. Can we both
contribute in PPF account of our minor daughter. If yes how the entries for
contribution and interest be made in the books of father and mother. We do not
need to claim deduction under Section 80 C.
Answer :
As per paragraph 3 of the Public Provident Fund (PPF)
scheme, 2019 a parent can open a Public Provident Fund account in the name of a
minor. Under the PPF scheme, 2019 there is no restriction on any of parent or
both the parents contributing to the PPF account of a child. As per paragraph 4
of the scheme, an individual can contribute not more than ₹1.50 lakh to his PPF
account and the PPF account of the minor/s taken together. So, while
contributing to your own account, you can also contribute to the PPF account of
your daughter as long as the aggregate of all the deposits by each one of you
does not exceed the threshold of Rs. 1.50 lakh for contribution made to own
account and PPF Account of your daughter. Even there is a limit of Rs. 1.50
lakh beyond which money cannot be deposited in one PPF account. So,
contribution to the PPF account of your one daughter made by you and your wife
both together cannot exceed the threshold limit of ₹1.50 lakh. The limit of Rs.
1.50 lakh is applicable whether you wish to claim the benefit under Section 80C
or not for contribution made to the PPF account of your daughter.
As far as the entries for contribution and interest in your books of accounts are concerned, the contribution can be shown as gift made by you to your daughter in your books of accounts. The entries in respect of interest credited to the PPF account of your daughter will be made in her books and it will not at all reflect in the books of the contributing parents.
Source : www.livemint.com
------------------------------- The end -------------------------
No comments:
Post a Comment