POSTED BY October 28, 2013 12:47 pm ONE COMMENT
ONHi,
My spouse is not working and I have a child. I want to invest 1 lakh each in the name of my wife and child yearly.
The following are my queries :
1.Since my spouse and child are not earning salaries , I am gifting them money .Is this taxable under their or my names ?
2.Is the interest generated from the PPF is taxable under my head ?
Now the question is the interest generated from the PPF is taxable under my head ?
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Dear Kumar, as you are giving your own money to wife, the income from it ‘ll be added to your income. Now as the PPF interest is tax free. the impact on you is NIL.
You may directly invest 1L Rs. in your account and youyr wife’s account but tax benefit ‘ll be limited to just 1L R.s of section 80c’s over all limit.
Being a guardian in your minor kid’s PPF account, you can not invest more than 1L Rs. combinedly. hence for you+kid’s PPF account the limit is combined 1L Rs. and not 2L Rs. as you were thinking.
Thanks
Ashal