Weather to save in PPF or purchase land with my 9 lacs saving ?

POSTED BY vinay100 ON August 11, 2014 1:25 pm COMMENTS (7)

Hi,

We are a family of 3 who are all majors and i am left out with 9L annually, after all the spendings and paying for insurance and mutual funds annually. My questions are

1. Weather to invest in PPF by opening 3 accounts for 3 people ?

2. Or to purchase land with this amount every year. I am confused about this. which one to go for. Can you please guide me Sir.

7 replies on this article “Weather to save in PPF or purchase land with my 9 lacs saving ?”

  1. Rakesh Kumar says:

    @Vinay100 – ignore my last comment about HUF, HUF cannot create PPF in it’s own name, however it can invest in PPF of other HUF members.

  2. vinay100 says:

    4.5L is interest from fixed deposits (this is not taxable). so i would like to know what needs to be done. Another 4.5L is income from other sources and pension of my dad.
    thank you….please help…

    1. Hemanth Chandra says:

      Any person can invest only 1.5L from him income in PPF…. If the income is yours, you cannot invest in your parent’s name in PPF…..

      The total exemption from a person is 1.5L per annum only….

      1. Rakesh Kumar says:

        @Vinay100 – You can only invest in your and your spouse or childrens PPF A/c (1.5 lakh per a/c, total of 3.0 lakh for your case). You can claim tax deduction under 80C, only for your own a/c, which would be only 1.5 lakh. Clubbing of income would not be the case here, as PPF’s interest is tax free. Also you can ask your dad to create his own PPF a/c if he does not have one, and he can invest 1.5 lakh in his a/c and also claim tax exemption under 80c. Since you have surplus amount, you can also explore HUF, create a HUF a/c(assuming you are hindu by username) and even invest 1.5 lakh in the HUF’s PPF a/c.

  3. vinay100 says:

    yes i do have emergency fund of 10L , Health insurance of 10L and life insurance of 50L (term plan)…we are family of 3(dad, wife and me) so i have a ppf accound on my dads name so if i open another 2 accounts then total amount i can save in them is around 4.5 l and i will be left out with another 4.5 L so my question is, it takes more time to purchase land if i invest in all the three accounts. so i am thinking weather to open 2 accounts or not

    1. Hemanth Chandra says:

      Is the 4.5L that you are planning to invest in PPF is your income ?

      Note : pls reply to my comment so that I will get that update to the mail and I can reply back fast

  4. Hemanth Chandra says:

    One can invest only upto 1.5L per annum in PPF. If you invest in your kid’s account, then also it will be considered as your amount only and you can invest only 1.5L combined in your, your kid’s accounts ….

    If you have any loans you can use this money to pre-close those….

    You can also invest for your goals to complete them fast….

    Also, do u have emergency fund, health and life insurance ?

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