POSTED BY April 21, 2014 2:11 pm COMMENTS (3)ON
We know that under PPF rules, an individual cannot contribute more than Rs 1 lakh to his PPF account, including the account of a minor child of whom he is the guardian. However, what happens when the minor child attains majority?
1. Do PPF rules allow the individual to contribute 1 lakh to his major child’s account (or a combination of Rs 1 lakh in both his and major child’s account)?
2. Do Income Tax rules allow the depositor (parent) to claim the entire Rs 1 lakh so contributed as a deduction under income tax rules?
3. Lastly, if the parent cannot claim the portion contributed to his major child’s account, can the child claim the tax deduction for amount deposited by the parent in his/her account?
The essence of all 3 queries above is whether PPF rules allow any person (say a parent) apart from the account holder to deposit money in a major account holder’s account.