Hi
I have a doubt in PPF . One of the readers on our blog comments section said that he came across an article which said that one can open PPF account in your spouse name and invest Rs 70,000 per year. The return from spouse PPF investment will be clubbed with your income for taxation as per income tax laws for money gifted to spouse. As the return for PPF is tax free, the clubbed return does not impact or increase your taxation. This is a smart way to invest Rs 1.4 lakh per year, Rs 70,000 each into your and your spouse PPF accounts.
So the conclusion is that you invest in Wife PPF account and becuase the PPF returns are non taxable , even if it should be clubbed with your income , then also it will not be taxed .
Any idea on this or your thoughts ?