My PPF account – can my wife deposit money in the same

POSTED BY Atin Sehgal ON March 8, 2013 6:35 pm COMMENTS (10)

Hi!

I would like to know, I have a running PPF account.

Can my wife deposit money in that?What is the tax treatment in that case?

Also In case I wish to open another PPF account for minor son…Can my wife can open the same and operate for minor son?

 

 

10 replies on this article “My PPF account – can my wife deposit money in the same”

  1. Dear Atin, if your 80C related 1l Rs. limit is already exhausted, you can use your PPF account for tax saving by investing & claiming the benefit for your wife. Yes she can invest her own monwey into your account & claim the same into her tax benefit.

    thanks

    Ashal

  2. Dear Pravesh, Yes the wife can have her separate PPF account & can claim her separate tax benefit if her income crosses the 2L Rs. limit.

    By the way the gifting suggested by you ‘ll not be her taxable income, if it’s within the defined relations as per IT act.

    Thanks

    Ashal

  3. Pravesh Jain says:

    Dear Ashal,

    I do agree with you but my questions are more from knowledge and debating perspective and not my personal case like this case of gifts. 🙂

    By the way, I am still waiting for your answers on the two questions written before large family paragraph.

    Thanks
    Pravesh

  4. Dear Pravesh, if the so called large & extended family is indeed there, Your wife may has such huge amounts as gift but do remember, in case Income Tax people knock your door, onus ‘ll lies on your wife to prove that the so called 3-4-5L Rs. amount are gifted from such extended family, each year.

    In case, there are too many people gifting so much money, receiving it through cheques & net banking & preparing a gift deed is a good IDEA Sir ji. 🙂 🙂

    Thanks

    Ashal

  5. Pravesh Jain says:

    Dear Ashal,

    Why you mentioned it “theoritically” yes only? Does that mean one should not in reality do it?

    Regarding your other question, it is more intended towards understanding that amount in wife PPF account in this case will not be counted towards husband 1L limit. Please advise.

    PPF is a good instrument risk free for long term savings and so idea is to put some money in it irrespective of exceeding 2Lac limit or not.

    By the way, where families on both husband & wife end are large families (like parents of both husband & wife being 7-8 sibilings and their children married etc… ) this can also happen wherein gifted money can exceed 2L. Add to it few family functions in a year at both ends. Do you still think it can not exceed 2L? 🙂

    Thanks,
    Pravesh

  6. Dear Pravesh, theoretically yes. Now do you want me to believe that from so many small savings, your wife ‘ll having a total income in excess of 2L Rs. which ‘ll invite Tax? Am I missing something here?

    Thanks

    Ashal

  7. Pravesh Jain says:

    Dear Ashal,

    If husband is working and wife is not working, can wife oper her seperate PPF account and deposit money it from small gifts money she saved in her account.

    If yes, does that also mean that it will be considered in seperate 1 Lac limit for her?

    Thanks,
    Pravesh

  8. Dear Atin, as you have not opened the PPf account for your minor son, Please wait for a while. I want to know, your wife has her own PF account or not?

    there is a small twist in the answer given by dear FFC.

    if there are only 2 accounts – you & your son (under your guardianship), the 1L Rs. deposited by your wife into your account or in son’s account ‘ll be eligible for tax benefit. At the same time she can also invest in your account. if you want to claim tax benefit on both PPF account. there should be investment in one account from you & in one from your wife.

    thanks

    Ashal

    1. Atin Sehgal says:

      Thanks Ashal for your response.

      I am abit confused…Let me re explain my query or issue for which I wanted advice.

      I have a PPF account in which I am putting money and claiming 80C benefit.

      Now I find that I can exclude PPF from the investment list since in next fiscal year I can have home loan principal and interest benefit coming up since i would be getting my flat.

      Hence I want to know if my wife who is working puts money in my ppf account will she get rebate under 80c.

      Else if she opens her own PPF account for minor son can she get tax benefit for herself.

      Please advice.

  9. Yes to both. Total contribution and 80C deduction is limited to 1 lakh for all three accounts combined.

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