Public Provident Fund - PPF
- Thread starter TATrader
- Start date
sir,
i have a ppf account for past 2 years and saving 70,000 per year for tax savings. is it legally possible for me to open one more account(in the same bank) in the name of my child for whom i will be the guardian?
This second one is for savings and not for tax savings.
can you please clarify it?
i have a ppf account for past 2 years and saving 70,000 per year for tax savings. is it legally possible for me to open one more account(in the same bank) in the name of my child for whom i will be the guardian?
This second one is for savings and not for tax savings.
can you please clarify it?
....
5. The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000. The interest you will earn is 8% per annum.
Let's say you open an account for your minor child. You can deposit Rs 70,000 in your account and Rs 70,000 in your child's account. But you will only get the tax benefit on Rs 70,000.
Just because you have one account for yourself and one for your child, it does not mean the tax benefit is doubled. The limit is the same -- Rs 70,000 -- irrespective if it all goes in your account or is divided betweeb your account and your child's account.
.....
m
...from rediff.com....
....
5. The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000. The interest you will earn is 8% per annum.
Let's say you open an account for your minor child. You can deposit Rs 70,000 in your account and Rs 70,000 in your child's account. But you will only get the tax benefit on Rs 70,000.
Just because you have one account for yourself and one for your child, it does not mean the tax benefit is doubled. The limit is the same -- Rs 70,000 -- irrespective if it all goes in your account or is divided betweeb your account and your child's account.
.....
m
....
5. The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000. The interest you will earn is 8% per annum.
Let's say you open an account for your minor child. You can deposit Rs 70,000 in your account and Rs 70,000 in your child's account. But you will only get the tax benefit on Rs 70,000.
Just because you have one account for yourself and one for your child, it does not mean the tax benefit is doubled. The limit is the same -- Rs 70,000 -- irrespective if it all goes in your account or is divided betweeb your account and your child's account.
.....
m
well once i was seeing tax guru on cnbc awaz.....and there Mr lakhotia was suggesting to deposit or open PPf acct on wife and child name....to get some benefit....though clubbing was allowed...i failed to understand it....but does it have any benefit doing so....in child its clubbed...same goes with wife...that if u gift her.....and see earns income on that money its taxed....so PPF idea came in.......Any CA throwing more light on it will help
Please accept my apologies but my questions are answered before. I couldn’t find more precise answers so asking these here.
my scenarios : I am 29 year old, NRI living in London with no income in India. Recently I got married and going to be father soon so would like to do some savings. I was thinking about PPF. if anyone else got better idea please let me know please.
Can I deposit Rs.70000 at a time if yes what’s best time to deposit in a year ?
I understand that NRIs can open PPF account but not clear about this condition 'Subscriptions, however, will have to made from their NRO account on a non-repatriable '. However I have NRO account with Citibank, delhi and PNB, jaipur.
One more thing if anyone is aware off please. I am british citizen with OCI card but plan to settle in India permanently now. What will be my status in terms taxation?
Please reply.
regards,
sandeep
my scenarios : I am 29 year old, NRI living in London with no income in India. Recently I got married and going to be father soon so would like to do some savings. I was thinking about PPF. if anyone else got better idea please let me know please.
Can I deposit Rs.70000 at a time if yes what’s best time to deposit in a year ?
I understand that NRIs can open PPF account but not clear about this condition 'Subscriptions, however, will have to made from their NRO account on a non-repatriable '. However I have NRO account with Citibank, delhi and PNB, jaipur.
One more thing if anyone is aware off please. I am british citizen with OCI card but plan to settle in India permanently now. What will be my status in terms taxation?
Please reply.
regards,
sandeep
Last edited:
any one can help please ?
Please accept my apologies but my questions are answered before. I couldnt find more precise answers so asking these here.
my scenarios : I am 29 year old, NRI living in London with no income in India. Recently I got married and going to be father soon so would like to do some savings. I was thinking about PPF. if anyone else got better idea please let me know please.
Can I deposit Rs.70000 at a time if yes whats best time to deposit in a year ?
I understand that NRIs can open PPF account but not clear about this condition 'Subscriptions, however, will have to made from their NRO account on a non-repatriable '. However I have NRO account with Citibank, delhi and PNB, jaipur.
One more thing if anyone is aware off please. I am british citizen with OCI card but plan to settle in India permanently now. What will be my status in terms taxation?
Please reply.
regards,
sandeep
my scenarios : I am 29 year old, NRI living in London with no income in India. Recently I got married and going to be father soon so would like to do some savings. I was thinking about PPF. if anyone else got better idea please let me know please.
Can I deposit Rs.70000 at a time if yes whats best time to deposit in a year ?
I understand that NRIs can open PPF account but not clear about this condition 'Subscriptions, however, will have to made from their NRO account on a non-repatriable '. However I have NRO account with Citibank, delhi and PNB, jaipur.
One more thing if anyone is aware off please. I am british citizen with OCI card but plan to settle in India permanently now. What will be my status in terms taxation?
Please reply.
regards,
sandeep
Re: Who can open a Public Provident Fund PPF account?
Hi
Are you sure that an NRI can open PPF account. I have been informed that NRI can not open any PPF account or any post office scheme. The only way NRI can continue PPF account is if this account has been opened before the person left the country.
Can you pl give more perspective on this.
Regards
Vivek
Hi
Are you sure that an NRI can open PPF account. I have been informed that NRI can not open any PPF account or any post office scheme. The only way NRI can continue PPF account is if this account has been opened before the person left the country.
Can you pl give more perspective on this.
Regards
Vivek
Who can open a Public Provident Fund PPF account?
Anyone can open a PPF account, either on his/her own behalf or on behalf of a minor. Being part of a General Provident Fund or Employees Provident Fund scheme does not disqualify you from subscribing to the PPF, but at no point are you allowed to have two PPF accounts in your own name at the same time. Doing so will invite a penalty: if the issuing authority (bank or post office) detects two accounts during the tenure of the scheme, you will get only your principal back. Also, two adults cannot open a joint PPF account -- an account has to be opened singly, but can have one or more nominations.
It's a good practice to open a separate account in the name of your spouse (or your minor children) and keep contributing to it -- you can even claim the tax benefit from the contribution made to accounts in your spouse's or minor children's names. In this way you could save tax-free funds even for your children and spouse.
Consider opening a PPF account even if you are not a taxpayer, and keep it active. When you do become a taxpayer, you will have an account that will mature early. Remember, however, that any change in the interest rate will apply to you too, even if you've been maintaining an old account.
NRIs who wish to avail of rebate on their income in India are also eligible to open a PPF account. Subscriptions, however, will have to made from their NRO account on a non-repatriable basis.
Anyone can open a PPF account, either on his/her own behalf or on behalf of a minor. Being part of a General Provident Fund or Employees Provident Fund scheme does not disqualify you from subscribing to the PPF, but at no point are you allowed to have two PPF accounts in your own name at the same time. Doing so will invite a penalty: if the issuing authority (bank or post office) detects two accounts during the tenure of the scheme, you will get only your principal back. Also, two adults cannot open a joint PPF account -- an account has to be opened singly, but can have one or more nominations.
It's a good practice to open a separate account in the name of your spouse (or your minor children) and keep contributing to it -- you can even claim the tax benefit from the contribution made to accounts in your spouse's or minor children's names. In this way you could save tax-free funds even for your children and spouse.
Consider opening a PPF account even if you are not a taxpayer, and keep it active. When you do become a taxpayer, you will have an account that will mature early. Remember, however, that any change in the interest rate will apply to you too, even if you've been maintaining an old account.
NRIs who wish to avail of rebate on their income in India are also eligible to open a PPF account. Subscriptions, however, will have to made from their NRO account on a non-repatriable basis.
Re: Who can open a Public Provident Fund PPF account?
Can someone help with this pl.
REgards
Vivek
Can someone help with this pl.
REgards
Vivek
Hi
Are you sure that an NRI can open PPF account. I have been informed that NRI can not open any PPF account or any post office scheme. The only way NRI can continue PPF account is if this account has been opened before the person left the country.
Can you pl give more perspective on this.
Regards
Vivek
Are you sure that an NRI can open PPF account. I have been informed that NRI can not open any PPF account or any post office scheme. The only way NRI can continue PPF account is if this account has been opened before the person left the country.
Can you pl give more perspective on this.
Regards
Vivek
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