5 must know rules before Opening PPF Account for minor children

PPF account is one of the most favorite investment product in India and every person wants to open a PPF account for his minor child. However, there are lots of myths about the rules on opening PPF account for minor kids. In this article, we will look at some of the important points you should know if you want to open a PPF account for your children. We will discuss about tax exemption, limit on the amount you can invest and PPF maturity rules. Here they are

rules ppf account for minor children

1. Who can open PPF account for minor Child ?

As per PPF rules, a guardian can open Public Provident Fund account for minor child, where guardian is

  • Either Father or Mother
  • Or incase of Parents are not alive, then any other guardian under the law can open PPF account for minor children, like Uncle, Aunt, Grandmother, Grandfather etc.
  • Incase a surviving parent is incapable of acting, then also some other guardian (as mentioned above) can open PPF minor account

2. How much can I invest in PPF account of Minor Child ?

There is a very big confusion around this topic. The most common question is – “Can I invest more than 1 lac in PPF account ?”

As per my understanding and all the readings I did on this topic, I came to know that One can invest maximum of Rs 1 lac in all the combined PPF (Public Provident Fund) account a person has which is self , and for minor children. Example – Imagine there is a Father (F) and Mother (M) and there are two minor children – C1 and C2 . Now follow scenario’s are possible

  • Father (F) can open PPF account for himself, C1, and C2
  • Wife (W) can open PPF account for herself, C1 and C2
  • Father can open PPF account for himself and C1 (or C2) , Wife can open PPF account for herself and C2 (or C1)

Here are these 3 scenarios possible

PPF account for minor

3. Can I deposit more than 1 lac in PPF account even if I don’t need income tax exemption ?

This is one question which really needs clarity, because a lot of people open PPF accounts for minor children and invest Rs 1 lac in all the Public Provident Fund accounts (Here are articles on opening PPF account with ICICI Bank and with SBI Bank). You don’t get income tax exemption under 80C for more than total Rs 1 lac, which is fine for many people, but are you eligible to get benefits on more than 1 lac invested or not ?

As per PPF rules, you are just not allowed to invest more than Rs 1 lac in your own PPF account or any other PPF account where you are guardian. So if you have 2 kids and you have opened PPF account in their names, you might be thinking that you can invest 1 lac in your own PPF and 1 lac in each kid PPF account so that you can enjoy tax free maturity income later for your kids PPF account . But I dont think its allowed, because as per PPF rules, the 1 lac limit is for an individual , not on per account basis .

But I have been investing more than 1 lac each year, already from many years !

I know, a lot of investors who have been investing more than 1 lac in PPF each year. Due to technological challenges, it might be possible that no one stopped you from doing it, but in future if govt comes to know that you have been avoiding the rules, you might not get any interest on the excess amount, so you might get back only the principal amount at the time of maturity. A lot of Bank staff are also not clear on these rules , here is an incident which was shared by one of our readers 

Today I met manager of the branch of bank (State Bank of India) where I have all these three accounts. I narrated the whole scenario. He does not see any problem with the situation. I am really confused as to continue this mode of financial plan or to change it in the light of your clarification regarding the total ppf investment limit.

4. Do I need to declare about my personal PPF accounts at the time of opening minor PPF ?

A person can not have more than 1 PPF account on self name, but they can have it as a guardian for his children , but you need to declare about all your PPF (Public Provident Fund) account as self and for other children at the time of opening a new PPF account with other kids. Because when you fill up the PPF opening form, there is a declaration you need to give about it , here is a snapshot of how it looks like

self declaration ppf form

Which means that legally you need to declare about your other PPF accounts , if you don’t do so, you are breaking the law and if in future its detected that you have been doing what is not allowed, all the money you have deposited in PPF account in excess to the limit allowed will just be returned to you without any interest, and that might be a big blow to your overall planning.

So, a small change you can do in your overall planning is that, you can ask your spouse to open PPF account as guardian for the child, this way, one husband can avail upto 1 lac benefit and wife can also avail upto 1 lac benefit.

5. What happens when the minor kid becomes a major ?

Case 1 : If PPF account matures before the child attains 18 yrs In this case the guardian can either withdraw the money from PPF or extend it for another 5 yrs block . In this case, the money withdrawn will be treated as guardian income and now when this money is invested somewhere else and any interest income is earned (learn how PPF interest is calculated), then it will be treated as guardian income only. So imagine PPF (Public Provident Fund) account is matured and the kid is still minor (assume you opened the PPF when he/she was 1 yr old) and you get Rs 10 lacs from PPF account, now when you invest this 10 lacs into FD , you get Rs 1 lac as interest in a year, this interest income will be treated as your income (guardian income) and will be added into income and taxed accordingly.

Case 2 : If PPF account matures after the child attains 18 yrs (become’s major) – In this case, the account will then be operated by the child (who has become major) and there will be no guardian. The child will then take his/her own independent decision. In this case, because the PPF account has matured after the child has attained maturity age, all the maturity amount will be income of the child itself, Now any interest income earned on this amount in future will be kid income.


PPF account for minor children is a good idea if you want to build a long term corpus for their education or other requirement. However if you are already exhausting your own limit for PPF (Public Provident Fund), then it might not be that useful because their a limit on the investment amount. You need to see how you want to divide the amount between your own and your kid and whom do you want to make guardian, yourself or your spouse ?

Can you share about your case ? Do you have PPF account for your minor child ?

224 CommentsAdd Comment

  1. Som

    Hi Manish,

    As usual great article. Really learnt a lot from your site.

    Just to mention, in the above article may be the pictures for Scenario 2 and 3 needs to be swapped.

    Keep up the good work, waiting for the next article….

  2. Ashwin

    yeah, this is a good article Manish. I also opened a PPF account for my kid a few months back. It will mature before age 18, so will be extending it for 5 yr block & then depending on Kids edu need, will withdraw money, but will not close the PPF account.

  3. Raj Singh

    Father can open PPF account for himself and C1 (or C2) , Wife can open PPF account for herself and K2 (or K1).

    What’s K2 and K1.

  4. Sharad Madan

    Great and easy to understand article :-)
    Even recently I came to know about this 1 lakh limit inclusive of self and minor account. But I already submitted 1 lakh each in both accounts by then….I hold both PPFs in ICICI. It has been 14 days since I raised the issue with ICICI for getting a solution. They have raised some requests internally and still bogging there head as what to do now. I talked to their auditor as well and recommended to make there online system full-proof so that more than 1 lakh submission is not possible at least where both PPFs are in same branch (may be they can track thru PAN…becoz same PAN is used for self and minor’s account)…lets see what happens….I really don’t want to loose interest at maturity for this mistake..

  5. Lakshmaiah

    Dear Manish,

    Very good article.

    I have two kids and wanted to open the PPF account for 4 of us (Myself, Wife,C-1,C-2). As you mentioned in the article I do not intend to claim tax benefit under section 80C.

    My Initial assumption is to invest 1 lak each in all the accounts as the amount is not taxable on maturity. But after reading this article, it looks like not correct as per law and we may loose the interest portion if get caught. so what is the solution for this? Pls suggest?


    • The thing is that you are 2 adult (husband + wife) , so maximum 2 lacs total can be invested in any number of PPF accounts. Maximum 1 lac by you and another 1 lac by wife. Now how you want to structure things depends on you. If you want to put maximum in children PPF account, then the best thing would be to open 1 child PPF with you and another child PPF with wife and put major part in child account (like 80k) and rest 20k in personal account. This will be beneficial only if you are claiming 80C benefits from some other investments . Now in future at maturity times, PPF;s for kids will have a good amount and they will be ready to take hold of them


  6. Sachin Ashturkar

    Hi Manish,
    Very good article! Also, it came in at a very good time for me, since I was contemplating opening ppf a/cs for my 2 minor kids (one with self as guardian and other my wife).
    We both are maxing out on our ppf limit every year, so I think I will just wait till they become major to open an a/c on their name.
    Then, at that time, can I fund my kid’s a/c with my money, without breaking any laws? For that matter, can anyone deposit money into any major’s ppf a/c without any backlash to the depositor?
    Thank you.

  7. sk sharma

    I have opened 2 PPF a/cs in the name of my children aged 7.5 nad 4.5 years with my wife’s PPF a/c.
    When they will become major, PPF a/cs will still be completing 15 yrs period.
    After attaining 18yrs will their PPF a/cs still be clubbed with their mother’s or all will be independent PPF a/cs?

  8. Syamantak

    Hello Manish,
    In one of the popular Facebook groups, I read an interesting point which allowed altogether 3 lakhs to be saved for a family of 3. Here is how it was done. Both the parents have PPF accounts and additionally opens an account for Child (C). Now the suggestion says that the Father deposits 5K in his own account and 95K in Child’s account. Now Mother is suggested to Deposit 95K in husbands account and 5K in child’s account along with 1L in her own account.
    Now since the father is guardian of the children account, he’s within the limit of a total investment of 1L. Since mother is not marked as a guardian, she is entitled to deposit additional money in husband’s and child’s account, while depositing 1L in her own account.

    This seem to be interesting for the people, who want to gain the tax free interest but not interested in 80C. Isn’t it?

    • jeearbi

      This may not be possible as the combined subscription to Father’s PPF and his child’s PPF a/c exceeds 1L. Otherwise what prevents the Mother depositing say 2L in Father’s PPF a/c?

      • ashalanshu

        Dear Jeearbi, the basic limit is 1L Rs. hence Mother can not invest more than 1L Rs. in father’s PPF account. :)



        • Sachin Ashturkar

          I just returned from SBI where I hold a savings and a PPF a/c. I informed them that I needed to open a PPF a/c for my minor kid with me as guardian.
          I inquired about this possibility of my wife or any other person depositing funds into the minor’s a/c.
          I was told that money that can be deposited into the minor’s a/c HAS to be the guardian’s money. So, if my wife wants to deposit funds into our kid’s a/c, she has to first transfer it to me and then I can transfer the same to my kid’s a/c.
          This defeats the “loop-hole” of someone circumventing the “spirit” behind the rules.
          Can someone get word on this from the govt. dept. handling PPF?

          • ashalanshu

            Dear Sachin, Thanks for the update. Are you aware that from any bank account now you can invest in PPF account through netbanking? Now If someone is investing online, how can SBI people check that it’s guardian account or someone else’s account.

            Interestingly HUF’s money can be put in directly into it’s member’s PPF account. No matter the member is major or minor.



  9. Srinivas

    Interesting points.

    Actually this 1lakh is arbitrary and was increased from 70000 upwards few years back. There is no relation with any physical parameter(inflation,GDP etc).

    I feel that one can take calculate gamble, specifically when a child is nearing 18. One can have his PPF account in a back and for a minor in post office. Post office systems are not fully integrated. Deposit money (2 lakhs max).

    If at all one looses interest for a year or two, but once child becomes major, situation changes.

    Calculated gamble. Can turn either way. But still……………

  10. Kranti Goyal


    As mentioned in article that If child becomes major than child will become owner of PPF account and he can start deposit his own money. I have one question will he need to wait for another 15 year lock in or he can extend PPF for 5 years.

    If extension is like every 5 year than its good to open child’s PPF account as early as possible. So when he start earning and depositing money in PPF account he will enjoy only 5 year locking instead on 15 year locking.

    Thanks and Regards
    Kranti Goyal

  11. Ganesh Kamath


    I have a doubt
    once the minor attains 18yrs and becomes major , can we deposit full one lakh in his account and one lakh in the parents account , even though the person is not earning and still a student.



    • ashalanshu

      Dear Ganesh, yes a parent can deposit 1L in self account and another 1L in major kid account. Now extending the above family diagram as given by dear Manish, let’s assume both children are also major now after some years with their old PPF account. Mother is a house wife. Father is earning a decent income. Now at this point, the father can invest the maximum 4L Rs. (1L *4 individual accounts) in all the 4 accounts.



  12. Dipak

    Good Explanation
    As per my knowledge is concern HUF cannot open PPF account.
    My query is that whether HUF can deposit in kids account

    • ashalanshu

      Dear Dipak, Yes, HUF can not open new PPF account but it can deposit contribution into members’ PPF account. In this case, the section 80C limit ‘ll be 1L Rs. to claim from PPF investment for HUF but all PPF accounts can be topped up from HUF money.

      Interestingly in this case, if the above exampled family is also having HUF, the HUF can be used to park 4L Rs. in total in husband, wife and 2 minor kids’ account.



  13. Kiran Kumar

    I have one option to add to the scenario, Experienced members shall say whether it is possible or not.

    In a family of 3 (Husband, Wife & a Child):

    Suppose a Father(F) will make a PPF to himself and to his minor Child(C) and Mother(M) will also make PPF to herself and to her minor Child(C). F will deposit Rs.5000/- in his own account and remaining Rs.95000 in C PPF A/c and M will deposit Rs.5000/- in her own account and remaining Rs.95000 in C PPF A/c. In such condition minor child after becoming a major will have a good sum of tax free amount.

    This can be followed only F & M have a sufficient exemption to be claimed under 80C.

    • ashalanshu

      Dear Kiran, please check your reply, in total you deposited 190000 Rs. in C account which is not possible. Please read the comment above given by dear Syamantak for the scenario you are asking for.



      • Kiran Kumar

        I am thinking that F will open a Account in the name of C separately and M will open a Account in the name of C separately.

        In this Case they are disclosing the account maintained by them and they cannot give the other accounts maintained by other person in the name of C. (As per Application form Declaration).

        Please Correct me in this regard.

        • ashalanshu

          Dear Kiran, opening 2 PPF account for a single person is illegal. So how can you open 2 accounts for this child?





  15. Daljit

    I have an EPF account but no PPF account.

    Would the PPF account I open for my child be clubbed along with EPF limit. For ex. If I am contributing 50000 to EPF account, then could I contribute 100000 to PPF account or only 50000?

  16. Ankit Gupta

    Dear Manish,

    A very informative article.
    Thanks for it. I have a few queries.
    1. After maturity of my PPF account can I keep extending it in the blocks of 5 years.
    2. In case I open a PPF account for my kids and it matures after they are 18+ then can they keep extending it in the blocks of 5 years till they want. Further in case they want to open their own PPF a/c can they do it during the period when the a/c which I have opened as guardian for them is still running.

    • ashalanshu

      Dear Ankit, after initial 15Y period, you may extend your own PPF account any number of time for blocks of 5Y each.

      For your kid’s account, it’s advisable to continue the old account with multiple extension of 5Y blocks. NO, as a PPF account is already running in a major kid’s name, new PPF account can not be open in parallel. Yes after closing the old account, new account can be opened. Please do remember, if your kid opt to close the old account, the money ‘ll be paid to him and now to invest the same in a tax free investment ‘ll be a problem. Hence it’s advisable to continue the old account.



  17. ongkie

    hello manish,
    i am in delimma. I have 2 ppf accounts (for self and daughter ) and my wife has 2 ppf accounts ( for herself and son). we have been depositing a total of 4 lacs in all accounts for the past few years. what are our options now? please advice.

      • ongkie

        hello ashal
        That is sound advice..thanks. But what will happen to the excess deposits? Will withdrawing partial amounts after 5 years rectify the mistake? Also i think the government can easily have a software programmed to alert investors when their maximum amount has been reached…but they purposely chose not to. I know from personal experience that if one person tries to open 2 accounts then a message is displayed preventing any further action. ..so why not the same for deposits

        • ashalanshu

          Dear Ongkie, actually you can still invest 4L Rs. in 4 accounts but you do need a little bit play around. Please check the comment of dear Symantak above.



          • seeni_pv

            Dear Mr.Ashal,

            Referred to the above said post where the scenario for 3 poeple & total investment of 3 lacs has been explained. Below i’ve come up with a scenario for 4 people (including 2 minors) & total investment of 4 lacs. Please correct me if i’m legally wrong.

            1. Family of father, mother & 2 minor kids.
            2. Mother open a ppf acc for her own & assuming guardian for both minor kids. She invests 10k in her own acc & 40k each in minor’s acc (Total 1 lac)
            3. Now father of that family open a ppf acc and invests 1 lac for his own account. In addition since he is not a guardian he can invest 90K in wife’s acc and 60K each in minor’s acc (total 3 lacs)

            Another interesting thing about ppf is it is better than FD. While the interest gained in FD is taxable where as it is not taxable in ppf but the interest gained is better or same.

            With Best Regards,

            • ashalanshu

              Dear Seeni, yes it’s possible. I w’d prefer for the given situation like this.

              Father + Kid 1
              Mother + Kid 2

              Now father self account 500 + 99500 into Kid 1 and 99500 into Mother account + 500 into Kid 2 account.
              Mother self account 500 + 99500 into Kid 2 + 99500 into father’s account + 500 into Kid 1 account.

              Total 4L Rs. in 4 account.



              • psdobal

                Dear Ashal and Poovannan:
                My wife (W) has had her own PPF as mine (M)
                I just happen to open 2 Minor C1,C2 PPF A/C s last month. After going through your analogy, I seem to have two options:

                1. Since both C1 C2 PPFs have my PAN, I should get one C under my wifes Gaurdinship.
                2. I can deposite say 49.5K in each C1,C2 PPF and rest 1 k in mine. And the remaining 51.5k in C1,C2 and 99k in my PPF can come from W. While I deposite 1Lac in my wifes PPF.

                Please comment if I have understood the concept and my plan is not against the rules of PPF. which option should I opt for?

    • You are not doing right, As I said , if detected, you will not get interest on the additional money and will get it back without interest . I suggest not doing it next time

      • Srinivas

        The issue many were debating is simple. Can they deposit more than the specified amount.

        Legally, one cannot. But as the enforcement is weak, If one does, One may not get caught. (I mean, Chances are less). This is a gamble, one can take, specifically if ones child is near majority(16 or 17 years). This is because, in a year or two, the child will become major and she can invest as per her limit.

        However, there many other avanues where one can invest with equal result without any conditions.

        For example FD’s in some banks. If deposits are in (non working) wife or parent’s name, the interest tax can be saved.

        Similarly money market funds. they are also giving equal results, if invested properly.

        These avenues have additional advantage of liquidity. However, this is a double edged sword. If one is not disciplined, one may tend to withdraw and empty out the account.

        Thus one need not over do PPF and feel she is doing something illegal. It is better if one understands personal finance in detail and plan one’s strategy accordingly.

        • ongkie

          dear srinivas..
          i totally agree with you. i have a total excess deposited of 8L. Do i get a refund? Can i withdraw the amount at once? Will the amount continue to earn interest?

      • psdobal

        Dear Manish:
        Thanks for correcting. Is it possible to close the “minors” PPF accounts as mine were opened in Jan 14.

      • psdobal

        Dear Manish:
        Just to share- I visited and talked to the bank about the combined limit of all my 3 PPF accounts. It appeared that it has been a common practice for all to deposit 1 lac in every PPF account irrespective of how many minors PPFs one has opened.
        Thanks again for highlighting the very crucial point which all (including financial institutions) seem to overlook.

          • psdobal

            Dear manish:
            Sorry. it was other way round. I was told that I can deposit maximum 1 Lac in each account. But, I can avail tax benefit upto 1 Lac only- not 3 Lac.
            When I told that the maximum combined limit is 1 Lac. I was told that these are Kids account not mine, so I can deposit 1 Lac in each a/c without any problem- which I shall avoid because I can not close the minor’s PPF a/c before 15 years.

            • No , that is wrong .. even they dont know the rule

              You should not deposit more than 1 lac in total, right now technically the system does not check it , but in future if they know about it, you will not get any interest . The onus is on you to KNOW things !

              • Velmurugan

                Dear Mr. Manish
                I am also facing the same situation, but when I discussed with the SBI bank people, they showed the rule of PPF and told me, eventhough it is kid account it is entirely different account with different PAN, so there is no problem in future also. No question who is investing the money. Please reply.

  18. seeni_pv

    Dear Mr.Manish,

    Thanks for the wonderful article. I have a question, please clarify

    1. Is the deposit amount for ppf account fixed or it can be a variable amount each year as long as the mount we are depositing is within the min and max limit?


    • ashalanshu

      Dear Seeni, you have the liberty to deposit the amount as per your choice within the limits specified each year.



      • seeni_pv

        Dear Mr.Ashal,

        Thanks for the clarification. the reason behind my questions is If my financial terms are not good (Believe it won’t happen) in a particular year or two i can refrain from depositing the max amount of 1 lac each and just deposit as less as Rs 500 which is the min deposit amount.


          • seeni_pv

            Dear Mr.Ashal,

            Thanks again for the clarification. I got couple of more questions.

            1. As it is possible to switch the ppf account from one bank/post office to other bank/post office. Is there any limit for no of switches one can do?
            2. Is there any charge involved in switching ppf account from one to another bank/post office?

            With Best Regards,

            • ashalanshu

              Dear Seeni, you may transfer your PPF account any number of times from banks to banks or banks to P.O. or P.O. to Bank. There is no penalty on you for these multiple transfers. But problem may be there for the fact that any wrong calculation for interest done by prev. entity (bank or P.O., as the case may be) may result in losing such interest on your account. I do have example with me where during transfer of PPF account due to wrong interest calculation, old institution credited less amount.

              Although it was a few years ago when the system was not computerized.



  19. Arun

    Dear Manish,
    Can I open a PPF account for my wife (who is a housewife) and my 1 year son? How much can I invest in all 3 PPF accounts combined?


    • ashalanshu

      Dear Arun, you can open 1 account for your wife and another one for your minor son. In total you can invest 2L Rs. 1L between your own and kid’s account and another 1L into your wife’s account.



      • Srinivas

        Any major(completed 18 yrs) can open an account(PPF in this case) on their own.(Bank practices vary and some bank may need introduction). Opening on some one’s names arises only when she is a minor.

        If you see legally(illogically), one can invest 1 laks in his account if he is a major. However, if one opens for a ward, again legally(illogically) he can invest a total of Rs 1 lakh in both(or 3 if 2 children) accounts put together.

        Due to various reasons(post offices are not automated fully and many bank staff donot know the nuances), there is no check on this. And the practices vary widely from bank to bank.

        A minors account can be converted to a full fledged account when she attains majority. Then total eligibility of family for PPF investment increases.

  20. Dear Manish Ji,

    A. If possible please share the analyses on two policies: –

    1. Max Life Life Partner Plus Endowment to Age 75 Plan – 20 Pay
    2. Max Life Shikha Plus II

    B. Please recommend a term plan and a health insurance policy too.

    Thank You


    • ashalanshu

      Dear Gaurav, any combo plan can not provide the best of both worlds for you. Actually it ‘ll neither provide good insurance nor good return on your investment. So both the policies you are asking for review, should not be considered.

      Please purchase a term plan from the insurer of your choice. the best term plan is one, which ‘ll process your death claim in least possible time and with out creating any trouble to your family but unfortunately, you ‘ll not be there to see it on your own.

      In case of health insurance, please opt from Oriental, Apollo, Religare, Bajaj, Max.



  21. bharat shah

    ‘ So imagine PPF (Public Provident Fund) account is matured and the kid is still minor (assume you opened the PPF when he/she was 1 yr old) and you get Rs 10 lacs from PPF account, now when you invest this 10 lacs into FD , you get Rs 1 lac as interest in a year, this interest income will be treated as your income (guardian income) and will be added into income and taxed accordingly.’
    though interesting post and comments in matter of PPF a/cs opening and its taxation ,i differ slightly on matter of reinvestment of kid’s maturity a/m before getting major. as the matured a/m got two part:one principle invested by the parents plus interest earned on that principle year on year and other the interest earned on interest accumulating year on year, which i think, is now the kid’s own corpus. so when it is further invested in taxable income product, say bank FD, though the interest earned on the a/m equivalent to the principle originally invested by parents would be clubbed, the interest earned on the kid’s corpus would not be clubbed with parents.

    • ashalanshu

      Dear Bharat, till the kid is minor, the income ‘ll still be clubbed with parents,even if it’s income from income. If applying your logic, I as a parent, investing 10L Rs. in a FD for 1Y and earning 90000 Rs. as interest under my Kid’s name, reinvesting the same in 2 FDs of 10L and 90000 Rs. the income generated from 90000 FD should not be clubbed with my income, well wrong thought. :)

      I think you misunderstood with clubbing provisions of spouse income from investment of gifted amount from once’s spouse.



  22. bharat shah

    in regard to above comment, i like a hypothetical example for clarifying:
    parents invested in minor kid rs.50000/- yearly for 15 years in ppf with interest @8.5% p.a. will fetch @ rs.1411613/ at end of 15 yrs-. out of that , parents’ part would be rs.750000/- principle + rs.63750/- interest earned , total rs.813750/-, while balance rs. 597863/- would be kid’s corpus . so after 15 yrs the kid would earned his own income on further investing rs.597863/- and that would not be clubbed to parents’. the figures may not be exact . please clarify if the my understanding is not correct

  23. bharat shah

    i read your comments after extending my comment as above. you may be correct , and would like to check/get further thoughts from other members. but by logic, gifting to spouse/kid could be the same, i.e. spreading the corpus legally to the loved ones with sacrificing the legal ownership. for kid, after attaining major , he will definitely getting the title of whole such gift plus the earning on it in total, which is not the case of spouse.

  24. bharat shah

    you are very much correct and i am wrong! even child’s own income from any art is getting clubbed with that of parents’, then it is futile to think correct for treating income on income on gift his own.

    • ashalanshu

      Dear Bharat, if the income is earned by child by applying her own skills, that income belongs to her only and it should be filed for ITR under her own PAN.



  25. VB

    Checked with SBI & Post Office. From April 2013, there is a new ruling – if the parent has a PPF account, then another PPF account in the name of minor child cannot be opened up. So, net-net: you can have only one PPF account.


    • Srinivas

      I could open account in SBI for my second (minor) son two months back. I have a PPF account for self and another PPF account for my elder son.

      It appears the instruction might not have trickled down properly.

    • ashalanshu

      Dear VB, show me the so called new ruling. Please do not say that your bank staff told you so. Please provide me the proof from Govt. notification.



  26. Good article Manish. Your point is right that Rs 1 Lakh is the maximum which we can invest in minor child + self. I heard from some of my friends personal experiences.

  27. vignesh

    Hi Manish

    My mother is Home maker.

    So now i have PPF account in which i transfer .25L per yr and i want to open a one for my mom.

    can i contribute 1L to my mom and my mom allowed to use in her 80c ? and i can also parallely contribute up to 1L in my PPF ?

    Is the above thng ok ?

  28. Adi

    Dear Manish,
    Your article is excellent and I seek certain clarifications of my personal ppf case in 2 parts.

    1.)My father opened a ppf account in my name in 1994, when I was 8-yr old (minor) and I took over the account on attaining the majority. Going by the rules a ppf should end in 15 years; so it ends in 2009 in this case. In 2009, on I opted for an extension of 5 years, which means it ends in 2014.
    a.) Can I extend this account for another 5 years from 2014?

    b.) If I cannot extend, I will have to withdraw the whole amount
    (Principle+interest earned). In case of withdrawal, what part of the amount is taxed and at what rate?

    c.) If I withdraw this account, can I open a new ppf account in my name now and run it for another 15 years?

    Apologies if the questions are too basic or if I’ve missed anything information covered in your wonderful article.

    Thank you

    • ashalanshu

      Dear Adi, after completion of 1st block of 5Y, you can reapply for extension and can extend your existing PPF account any number of times you w’d like to. PPF is EEE instrument so in case of withdrawal neither principal nor interest is taxable.

      As you can extend your existing account, no reason to opt for closing current account and opening new one.



  29. Adi

    At what rate is the withdrawal amount of ppf taxed? It is only the interest part or the whole sum that is taxed?

    Can I close one ppf on maturity and open another one after a couple of years?

  30. Pankaj

    Hi, I checked with my SBI personal banking branch and as per then we can deposit 1lac to each my account and kid(s). So I have 4 PPF accounts myself H, my wife W, kid K1, kid K2. I am guardian for K1 and my wife is guardian for K2. So I can deposit to 1lac to each H and K1 account and my wife can deposit 1lac to each W and K2. She (manager) said there is no written guideline for this. My kid account K1 is linked to my account H and both have same PAN number. System accept to deposit 1lac for each. So its valid. System is smart enough and does not allow deposit after 1lac. I deposited 1lac last year to my account H and 40k to account K1. And both got interest on 31 March. I discussed all above case with her and still she is confident its valid and my deposits are valid.

    • ashalanshu

      Dear Pankaj, regarding smartness of system, I do have cases with me where people incidentally deposited more than 1L Rs. in a single PPF account through online transfer. Of course the deposits happened in 2 transactions.

      If you want to believe the info provided by your branch manager, do it at your own risk.



      • Pankaj

        Well real question is do we have any written guidelines for this? Nobody confirmed this with any written guidelines. All discussion we have so far is based on personal discussions, personal exp or talks with banks. But all this not proved with any written guidelines. Both ways it looks 100% right so it confuse. May be RTI to concerned department can get 100% right answer or atleast a written proof what they reply. Any body can revert from his/her words. Any idea to which department we shd submit rti?

        • ashalanshu

          Dear Pankaj, please read the account opening form of PPF and you ‘ll come to know what i mean. You may read PPF rule book also. It’s clearly written there if a person is holding self account + minor kid’s account under own guardianship, the combined limit is 1L Rs.



    • Your take ! ..

      Most of the people at bank are not aware of rules properly. the best thing you can do is ask them to give it on PAPER with their bank letterhead so that you have a valid proof !

  31. TGanesh

    PPF was account opened in the name of my son when he was a minor ( with me as father&guardian). My son went abroad for studies & after completing studies has started working abroad. My son has attained majority. The PPF account is maturing. How do I close the PPF account? What documents should I submit? My son is not in India to sign any forms- but he has signed a letter authorising me to close the account and receive the proceeds. If this letter is to be used , do we need to have his signature authenticated & if so, by whom?


  32. subhash

    Dear Manish,

    I hav mine own PPF account and wann to open 3 more accounts in the name of my wife, mine 02 minor sons seperatly, can i deposit 1 lac in each account means 4 lacs in four account or i am permitted to deposit ONLY 1 lac in all the four account.

    i understand that i can avail income tax benefit of only 1 lac for mine account and i dd not wann to take income tax benefits of remaining 3 lacs in the other account.

    pls advise.

  33. subhash

    Dear ashalanshu,

    Thanks for ur quick reply,i understand u suggested as below:-

    “Father + Kid 1
    Mother + Kid 2

    Now father self account 500 + 99500 into Kid 1 and 99500 into Mother account + 500 into Kid 2 account.
    Mother self account 500 + 99500 into Kid 2 + 99500 into father’s account + 500 into Kid 1 account.
    Total 4L Rs. in 4 account”

    mine further query is : in mine case only i am the only earner who has to operate all these four accounts, so in this case still the above suggestion works,if i deposit from mine income as suggested by you and take the statuatory applicable income tax benefit of 1 Lac only ?else How ? pls advise.

  34. Santosh Kulakarni

    Hi Manish, I do not have a PPF a/c for self, but we have a PPF a/c for our first child which is managed by my wife. I went to SBI today to open a PPF a/c for my second child which would be managed by me (father) and the manager there asks me to give a letter saying “this will bonafide for my child and I will not be claiming any exemption on the amount invested in the PPF a/c”
    Did not understand what this is all about, could you please shed some light on this?

    Thank You

  35. Umesh

    I am aware of one instance where a father invested three lakh rupees (one lakh each) through SBI into his own PPF, his two minor sons PPF accounts for three successive years without any problem only to find at the end of three years that this cannot be done and he received back the principal amount without interest that was deposited in his minor sons PPF accounts (accounts were closed).

    However, a major can invest his money in the name of other majors (children that are >18 year old or even parents or spouse) though can claim income tax rebate for only one lakh.

      • Sid


        Me and my wife both have our individual PPF a/c and I thought it was time to get ppf a/cs for our 2 minor children, so I went to my SBI branch for the forms and to my surprise the lady there said that the minors need to have their own PAN no’s to open the PPF a/c and that our PANs will not work.

        I was disappointed and came back thinking this was a bad thing as I did not want to get PANs for my minor children at this age and open a pandora’s box with the tax dept.

        I had planned to have one minor a/c each with my wife and me and have my mother and my HUF service mine and one minor a/c, while the wife took care of one minor and me the wife’s a/c.

        That way all 4 a/cs would be serviced by 4 different PAN nos, did that make sense?but reading your article and the ambiguity about who can deposit how much, it seems the incoming a/c PAN no is what matters which would be only 2, me with one minor kid as guardian and my wife with one minor kid as guardian.

        It now seems that getting PAN nos for the minors won’t be such a bad idea, a PPF in their name with their PAN would remove the whole argument.

        What do you think?
        I still haven’t calculated the Pro’s or Con’s of having a PAN for the minors so if you have some info on this, would love to hear about it.

    • Umesh

      It is the last clause (26) that actually clarifies the issue. It clearly states that:
      The ceiling on deposits as provided for by Central Government from time to time, which is Rs.1,00,000/- in a financial year at present, is both for individual self account and account(s) opened on behalf of minor(s) of whom he is the guardian, taken together.

  36. rajesh

    Govt wants our kids to be only poor. They make useless rules to create problems for society and then give subsidy.

  37. Dipankar

    Today I went to SBI in Kolkata to open PPF account for my two minor daughters. I already have a PPF account with the bank branch for last 20 years. They refused to open tha PPF account saying a father with PPF account cannot open new PPF account for minors. He said its not a bank regulation but its by the GOI and they have circular. To me it is absolute nonsense as long as I do not cross 1.5L in total. I was told to go and try in a post office. Any comment ?

  38. Rajesh Kr. Thakur

    Dear Manish

    Thanks for all the informative scenarios.

    I too have one scenario and need clarification on to this.

    Father being sole earner :

    Father +1 Kid = 2 PPF a/c with a ceiling of 1 Lac. Deposited the 1 Lac

    Father Gives cash say 1 Lac/ Year to his wife and which in turn deposited in to the Mother A/C.

    Now Mother + 1 Kid = 2 PPF A/c . Whether she can deposit 1 Lac it from her A/c Is this legal or what ???


    Rajesh Kr. Thakur

  39. Kalyani C

    Hi Manish,

    Nice Article.
    However, I have one confusion.
    I would like to open a PPF account for my minor kid for the current FY. But my PPF limit of 1.5L is already exhausted.
    Is it possible for me to simply open the PPF account in her name this year with minimum amount of INR 500? I am OK if I do not receive any interest for this INR 500.
    Please help.

  40. satheesh

    Hi Manish,

    I have 1 PPF account on my name ( which I am planning to dedicate for my son education purpose on long term )

    I have 1 child.

    Now my wife has 1 PPF account on her name – which we are planning to dedicate for retirement point )

    Do you suggest this model ? My only concern was : Is it right planning to divert good amount of money to traditional PPF savings way ? 1 account per child for education is good way. Where as 1 more for safe retirement is it a good plan of savings ? OR I am too conversative on taking risk of my money ?


    • I think its fine if you both are very conservative investors , else better put money in PPF for the goal which is closer and in mutual funds for your long term goal like retirement

  41. Rahul

    Hello Manish.

    As usual, an informative article. I have one question.

    Me and my wife have our own PPF accounts. I recently opened a PPF account for my minor kid with me as guardian. He also has a savings bank account with me as second joint account holder. His savings bank account is credited monthly with some amount from both mine and my wife’s account. It also has some cash deposited as part of gifts received on birthdays or other occasions. Now if he deposits this money from his savings bank account to his PPF account, who can claim the tax benefit under section 80/C? Will it be me or my wife or either of us?


  42. Abhijeet

    Is the maturity date 15 years after opening the A/c or is it like ELSS Mutual Funds, e.g. 15 years after every investment ?

    • monotosh_mondal

      Maturity date
      is 15 years more
      from the end of year ..in which account was opened…

      EXAMPLE :-


  43. Kartick Krishnan

    Hi Manish,

    I went to Axis bank to open a PPF A/c in my minor son’s name(I have a PPF in my name with SBI). Now, the bank ppl told me that I need to have a savings account in the name of my kid with them mandatorily. My question is if I already have a savings a/c with axis, then why do I need to open another account in my kid’s name? Is there a rule mandating that? Your responds would be highly appreciated.


  44. Raj

    Dear sir
    I have some query regarding PPF account which will may help some other reader. 1) I am NRI & I had PPF account which was open by me before getting NRI status & it is getting mature next year(15 years), I understand that NRI can not extend the PPF account , can keep it ideal after maturity & start deposing in the a/c after 4year(2019) when I will become resident again.
    2) My family is also with me (wife & 2 minor kids)out side of India, My wife having PPF account all of them on my sponsor visa not earning any money can I open account for my minor kid with my wife guardian to that kid.

    Thanks & regards

  45. Rajat

    Dear Manish,

    If I invest 1.5 Lakh in my Ppf account and suppose I also invest some amount in my house-wife ppf account, then the interest income from my wife ppf account will be tax free or will it be clubbed with my income every year ?

  46. Alka singh

    Thanks a lot for this superb article,cleared so many doubts regarding PPF account.we r also facing same situation with minor account in post office.we r very much puzzled now because we r investing in minor accounts of ppf for last fifteen years.my one kid is adult now and other is minor.what should i do.

  47. Derick Machado

    Wonderful article & replies to all queries Manish.

    What are the other best options other than PPF to get the tax benefit under 80C for a salaried person whose CTC is 10L ?

    thank you!

  48. Nanda


    Me & my wife are salaried employee. We both have individual PPF account. This year i deposited 1 lac in my wife PPF account & i have not made any in my account.
    My question is can i show the investment made in my wife’s PPF account for my tax exemption? Because, my wife will also be showing the same with her employer for tax exemption.. The amount was deposited by me.
    Can both of us claim for a same investment?

  49. Nishita

    I went to the SBI branch today to open a PPF account in the name of my child. The objective was to save money for his education and not for tax benefits. However, i was told that i could not open the same as only the Father is the legal gaurdian of the child. I spoke to the branch manager as well and he said the same. This was something new to me and i got thinking why there was a need for such a rule in India. They said ” We don’t make the rules. As per the Indian Marraige act, only the father is the legal gaurdian’. Thanks for your article. Now i know what they said is not correct.

    • Thats rubbish

      There is no such rule like that. ASk them to give show you that rule, as per PPF application form, it clearly mentions anyone of the parent (Kumar/Kumari) . Tell them in harsh words that you will complain about them to banking ombudsman to give you wrong information. Also ask them if they want their name to be mentioned in a RTI letter which you will write to branch manager and SBI bank.



  50. Ankit Sheth

    Hello Manish,
    Your articles and knowledge are very impressive. I would like to clarify a few things
    1) In Fy 14-15 max limit for PPF invest ments is 1.5 lacs correct??
    2) I have 1 PPFac in my name I ppf ac In my daughter name with me as gaurdian. so i can invest max 1.5 in these to accounts. but for example i am investing 50000 in lic policies than wats the max i can invest in both PPF accounts? is it 1lac max?
    3) also i have a HUF with me as karta. Can i deposit max upto 1.5 lacs in total, in my and my daughters PPF account and claim tax benefit in my HUF? does it mean that i can in total claim tax benifit upto 3 lacs from my individual n HUF account in following scenario:
    a) From my Individual account :
    50000 in LIC,
    50000 in My PPF
    50000 in my daughters PPF

    b) From My HUF:
    75000 in my PPF &
    75000 in my daughters PPF?

    Is this ok?

  51. Niyaz

    der sir, I am working in Dubai & I have nre account in SBI. can I open my son ppf account. as I have generated opening form which is to be filled and submit. please let me know if it cab be accepted by the branch,

  52. CK

    In my situation, my dad had opened a public provident fund account on my behalf around 10 years back when I was 17. He has been contributing to this account till date and has also claimed tax relief under section 80C for the same. This account will mature in 5 more years.

    I have the following questions :

    1. Since I am no longer a minor, can I start contributing to this account right away and claim tax relief for my contributions? I understand that to do this, my dad will have to stop contributing to the account and stop claiming tax relief for the same.

    2. Do I need to submit some paperwork to the bank before I can start contributing to the account or can I start contributing right away and start claim tax relief for the same assuming that my dad will no longer contribute to this account?

    3. What will be the features of such a PPF account with respect to maturity, withdrawals, interest, tax on interest, etc.

  53. Atul Mathur

    Hi Manish,
    I opened two minor accounts, one for each child. Let’s call then C1 and C2. One has turned major in June 2014. I got the minor PPF account (C1) converted to a Major account. Now I am confused how the investments during this FY (i.e. 2014-15) will be treated:

    Any amount invested to the account C1 in May 2014 (before child turned major and account was converted to a Major account) be clubbed with my limit of 1.5 Lac or it will be treated as an investment into a separate major account?

    I have invested amount prior to the child turning major in such a way that a total of 1 Lac in vested between my PPF account, C1 and C2. I want to use full 80C exemption for myself for this FY (2014-15). Should I consider investment in C1 as a minor account investment (i.e. I am eligible for full 1 Lac 80C limit) or as a major account investment which will not be counted under my 80C limit.

    I am not getting clarity from my bank. Any guidance you can provide will be appreciated.

    Atul Mathur

  54. Alka Sheth

    Dear Manishji,

    My son and Daughter in law have opened PPF account for my granddaughters G1& G2 respectively….

    My question is:
    1)can i contribute to my grandaughters PPF ?
    2) also can i cliam deduction unser 80C in my IT filling?

    Alka Sheth

  55. Srinivas

    Recently I came to know that there is no check on PPF account deposit at PAN level. That means their core banking software doesnot check the total PPF deposit for the year for a PAN number. Thus if one has two dependents, it will not stop him from depositing 1.5 + 3.0(for self and dependents).

  56. Vishal Gupta

    Dear Manish

    I am for the first time using this PPF platform, read from the beginning, very informative and so many doubts are clear now.

    my question is my PPF account will mature on 31.03.2016 (15 years), I would like to extend it indefinitely (extending 5 years every time ). but i am confused as some bank branched deny to extend after one 5 year extension.

    where i can read in rules that PPF account can be extended indefinitely (extending 5 years every time ).

    If we see form H – here also mention that My PPF account has completed 15 years on —–.

    then you extend period 5 years.

    • Hi Vishal Gupta

      Its tough to find out the rule book, but dont assume that they will reject it . Just go and ask for it . Ask them to show where is it written that it cant be extended . Take help of RTI if required

  57. A K Singh

    Dear Manish,

    I have 2 queries. My son was born on 5 April 2013. If I open a PPF account in his name in FY 2015-16, so it will mature on 1st April 2031 while my son will turn 18 on 5th April 20131.

    1. If I don’t extend by 5 years but withdraw the amount after 5th April 2031 will it be taxable in my hand or can my son as a major withdraw it without any tax implications on me?

    2. In case I have to do partial withdrawals between 7 & 15 years, will the amount withdrawn be taxable in my hand?

    All investments in my son’s PF a/c will be made from my post tax income. Also I do not intent to claim tax benefits on the amt invested in my son’s PPF account.

  58. Vinoth

    Today I visited SBI branch to open PPF account for my minor daughter. They are saying that to open PPF form for minor, we should have the minor PAN card for the daughter. Is it mandatory to have minor PAN card to apply PPF for minor?

  59. Ravindra

    Hi Manish,

    I and my wife have separate PPF account and now we want to open another account for our son (2 month old).

    Since we can only invest 1.5 lacs (Self + Minor), is there a way, if I can convert or show my wife account as (I have open PPF account for her) and then inevest 1.5 in my a/c and 1.5 l my wife’s a/c. And my wife can invest 1.5 L in my son’s a/c?.
    Please suggest.


  60. Karthik

    Hi Manish,

    Please help me out..
    After reading your books I have become crazy… I am going to dump all my LICs…
    Next comes the ppf…
    I always thought EPF+VPF is enough… But now I understand the need of ppf for my minor children…
    Ok the doubt is,
    Q1. Is there a link between SB account and ppf?
    If the answer is yes then,
    Q2. Me and My wife have a joint account in SBI.
    So is it possible for us to open our own individual (2 accounts)+ 2 more ppf accounts each one for our kids under each one of us… So total 4 ppf with one SB account. 1.5+1,5 L as limit…


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