270 thoughts on “PPF Account for Minor and Wife – Rules, Tax Benefits and Tricks”

  1. Your article is totally confusing.
    Please explain properly how much a family of 3 husband wife(both working) and child deposit into ppf to get maximum benefits

  2. Image showing wrong investment. We can deposit maximum up to 150000 in account irrespective of many accounts (self and/or minor)

    So 450000 and 600000 are wrong calculations.

  3. Hi Sir,

    As you mentioned maximum we can invest 6 lakhs per annum for a family which has 2 kids. So Does wife need to have her own income?? Please confirm

    or else husband can transfer to wife account , so she can invest in husband ppf account and 1 of child ppf account, where as husband can invest in wife ppf account and another 1 child ppf account.

    Thank you

  4. Hello,
    Is it possible to invest in minor’s account where you are not a guardian? The reason I am asking is because as per the rule ” The total investment in Self + Minor where we are the guardian should not cross Rs.1,50,000″

    Taking the 3rd case that you have shown, where one parent is a guardian to one child only. Preetham is guardian for Prachi and Dhanya is guardian for Jeevan.
    Scenario: Preetham has already deposited 1.5 lacs in his account and Dhanya too has deposited 1.5 lacs in her account.
    Question: Can Preetham deposit 1.5 lacs in Jeevan’s PPF account (where he is not a guardian but his wife is)? Similarly, can Dhanya invest into Prachi’s PPF account, where she is not a guardian but her husband is, to achieve 6 lacs investment?

    Would appreciate if you could clarify my doubt. Thanks.

  5. Hello, I have two kids and I’m trying your suggestion from above to invest 6 lacks. I have opened all our accounts in ICICI bank but they are not allowing more than 1.5 lacks contribution per pan card. As kids are linked with our pan card, we are stuck with a maximum contribution of 3 lacks.

    Appreciate Any suggestion on how to get out of this?

    1. Dear AL,
      When you are contributing in your wife PPF account, then you are not breaching the rule, and same way for your wife also. Let them show the rulebook.

  6. Navneet Aggarwal

    Suppose I had a minor child. I contributed 150000 to my wife’s PPF account and 150000 to minor child’s account; and get tax rebate on 150000.
    Now that the child is major and now his ppf account is in his name and his signatures. Can I still go on contributing to both of these accounts as before, and will I get tax rebate as before.

  7. Hi, My Wife had a PPF account and contributes 1,50,000 to her PPF account and claims 80c deduction. We have a HUF account where Me, My wife & my 2 children are members.
    We wanted to open a minor PPF amount for our minor child with my wife as guardian. Can our HUF contribute to this minor PPF account and avail 80C benefit for HUF? Will this breach 1,50,000 PPF limit of my wife?

  8. Sir, as per my understandings if I have my own PPF account and I have another one for my kid (marked myself as a guardian), I can invest 1.5L into my kid’s account per year and avail tax benefit under 80c. If my wife also working and she doesn’t have her own PPF account. But still she can deposit 1.5L into my PPF account and avail tax benefit under 80C. Is that correct? If so, my PPF account doesn’t have my wife name mentioned anywhere. Then how she can use my account statement as investment proof? How will her employer accepts?

  9. Hi, I have an Ppf account. My wife is homemaker has no income. Can I open a PPF account for her and i deposit 1.5L. After 15 years will I get EEE excemption for 3L?

  10. Me and my husband have individual ppf accounts and both of us are earning. We invest 1.5 lacs each in our accounts annually, totalling 3lacs in a year. Can I also deposit additional 1.5 lacs in my husband’s ppf account and he also deposit 1.5lacs in my ppf account in a FY. The total PPF investment for each of us will be 3lacs per year but we will get 80C benefit of only 1.5lacs. I hope that is possible.

    Also can we both directly do online transfers from my savings to his PPF or I need to transfer in his savings account first and then he transfers to his PPF?

  11. Raghukiran Mallappa

    Dear Sir,
    Firstly thanks for providing the Info.

    We are a family of 4, me, my wife (home maker) and 2 daughters ( both are minor). I have opened an PPF accounts for myself and my 2 daughters all linked to my PAN.
    How much can I invest in total into my PPF account and in the PPF accounts of my 2 daughters ? For eg . Can I invest INR 1,50,000/- in my PPF account and INR 75,000/- each in my 2 daughters PPF account ?
    I want to open PPF account in my wife’s name (who is a homemaker)and link with her PAN and Can I invest in her PPF account INR 1,50,000/- ?

  12. I have opened two minors ppf account under my gurdian but now i want to change pan no on one of my minor acct ..i want to make my wife gurdian of other account . Is it possible to change pan no. On minor’s ppf account

  13. Ganesh Saravagi

    Dear Sir,
    We are family of four. Husband, wife, Two son age 3 and 8 yrs.
    My wife is not earning presently.
    I and my wife don’t have any PPF account.
    I am Guardian of my elder son PPF account in SBI linked with my saving account. I am depositing Rs 1.5 lakh per annum in his PPF account.
    My wife is guardian of my younger son PPF account in IDBI Bank linked with her saving account.
    Can she deposit Rs 1.5 lakh per annum in my younger son IDBI PPF account ??
    If that money is actually transferred from my SBI Saving account to her IDBI saving account first and then she is transferring the money to younger son IDBI PPF??

  14. Dear Basavaraj,
    You showed that when husband and wife are guardians for one kid each, family PPF investment can be up to 600K. In this case, instead of parents depositing to kids account, can grandparents deposit it to grandkids account? In other words, grandparents want to gift PPF accounts of 2 grandkids (150K each) and their daughter (150K). Is this permitted?

      1. Dear Basavaraj, Thanks. Yes, it does not change the Rs.6 lakh investment. My question is does it break any PPF rules/guidelines? When the bank cross-checks the PAN number against PPF deposits, it finds Rs 3 lakh deposited under each PAN number (without stating who deposited it). I faced this issue from my back recently and they informed me that they will return excess money (1.5lakh) to the linked bank account.
        Best wishes, Vittal

  15. Dear Sir,

    I taking case 3 of above explained example, where one family can invest up to 6 lakh in PPF account. This is same case of my family. But I also have HUF account (all 4 are members of HUF). Now please confirm, HUF can also invest Rs 75000/- in daughter Prachi’s PPF account and Rs 75000/- in son Jeevan’s PPF account. Now HUF can claim Rs 150000/- tax benefit for his own IT return. Now finally, Preetham has Rs 225000/-, Dhanya has Rs 225000/-, Prachi has Rs 150000/- and Jeevan has Rs 150000/- in their PPF accounts (total Rs 750000/-) and all are eligible to get full interest on total amount from PPF account on maturity. Please confirm.

  16. Coming back to the basic aim of maximizing PPF contributions. I have a PPF account with my PAN, my husband has one with his PAN and my Minor daughter has a PPF with her PAN. I am the guardian for my Minor child. Now what you are saying is I can deposit 1.5 lacs into my husband’s account and my husband can deposit 1.5 lacs into my account and I can deposit 1.5 lacs into my minor daughter’s account. Thus total in any way it will become 4.5 lacs. Next question is, do we need to keep any records to prove that contributions are happening the way you have suggested. If yes, what proofs do we need to keep? If I electronically transfer funds from my savings account to my husband’s and my daughter’s accounts and my husband transfers funds from his savings account to mine, will it be suffice?

  17. I have a PPF account and am an Income tax assesee. I am informed that, I can open a PPF account in the name of minor child with her PAN and contribute 1.5 lacs each into mine as well as her PPF account. Please notethat, I am only talking of PPf contribution to two accounts here, not deduction claiming under 80C. I am aware that even though I contribute 1.5 lacs into each account, i can claim tax deduction for 1.5 lacs only. I am only referring to the contribution. If the Minor has a PAN then 1.5 lacs cab be separately deposited into minor’s account. is it right?

      1. I am surprised. I have shared your reply with some other financial professionals. They said if the PPF is opened in the name of minor with MINOR’s PAN, there is no issue and we can contribute 1.5 lacs into each account . Any way, let us leave it at that. Coming back to the basic aim of maximizing PPF contributions. I have a PPF account with my PAN, my husband has one with his PAN and my Minor daughter has a PPF with her PAN. I am the guardian for my Minor child. Now what you are saying is I can deposit 1.5 lacs into my husband’s account and my husband can deposit 1.5 lacs into my account and I can deposit 1.5 lacs into my minor daughter’s account. Thus total in any way it will become 4.5 lacs. Next question is, do we need to keep any records to prove that contributions are happening the way you have suggested. If yes, what proofs do we need to keep? If I electronically transfer funds from my savings account to my husband’s and my daughter’s accounts and my husband transfers funds from his savings account to mine, will it be suffice?

        1. Dear Madhu,
          Check the PPF rules. It is clearly mentioned that an Individual along with a minor account (where he is the guardian) can invest to the maximum of Rs.1,50,000. Regarding your second doubt, I have already replied to your latest comment.

  18. Manoj Kumar Jangid

    Dear Sir ,

    Is it possible for NRI Parents to invest in PPF for there minor child who is resident ?

    Kindly reply.
    Thanks .

  19. My sun has a ppf account with his mother as guardian. She is not having ppf account. I am also not having ppf account as I have epf. Now can the guardian to my son be changed from his mother to me? How?

  20. Hi Basavaraj, I want to open PPF account for my child (at HDFC Bak). But at the back they are telling me it is not possible to open PPF account on behalf of child as child doesn’t have Aadhar and PAN card. They also mention that only one branch in the city handle PPF Account opening requests.
    Could you please clarify on this. What are the documents needed to open PPF on behalf of minor? Thank you.

  21. Hi, I have PPF account in my spouse name(last 15 yes ) Who is not working I have no ppf account in my name i have been taking tax benefits from her account as I pay the subscription from my income
    Mosley me know whose money is it any way on matuurity ? Mine or spouse’s

    1. Dear Sir, last year I read your article and opened accounts as you had suggested in the block for my family with both parents working and 2 children and contributed as you had suggested to a maximum of 6.0 L. Recently I came to know that PPF rules have been amended last year and now it says that amount deposited in self or minor account together should not exceed 1,5L in a year. Is this true? If so what are the implications if we continue to deposit 6L in the way you have suggested?
      For reference I am reproducing the lines from the gazette notification dated 12th December 2019
      4. Limits of subscription.-(1) A deposit which shall not be less than five hundred rupees and not more than
      one lakh fifty thousand rupees in multiple of fifty rupees may be made in an account in a year.
      (2) Maximum limit of one lakh fifty thousand rupees as specified in sub-paragraph (1) by an individual
      shall be inclusive of the deposits made in his own account and in the account opened on behalf of the minor.
      Please clear my doubts, thanks

        1. Sir my question was whether the subclause (2) of 4, i,e limit of deposit of 1,5 lakhs in his own account and in the account opened on behalf of minor will be a problem? (Here there is no mention of source of funding, but limit is amount deposited in the combined account). Please calrify

  22. Dear Sir,

    Me and my wife, both are salaried. we have two minor daughters and we both contribute in their SSY accounts 1.5 L each and hence 80 C is already exhausted. Now in your above blog suggesting 6 L maximum deposit in PPF A/c, how can we deposit in our spouses ppf account if we have already deposited in our kids’ accounts. I’m sorry, but in PPF rules, it is written that one can deposit in self, minor or spouse account but overall limit is 1.5 L. I’ll very thankful to you if you could please cite any particular rule/section in this regard. I’m not looking for any tax exemption but only looking for maximising my returns. Thanks & regards.

    1. Dear Ashish,
      PPF and SSY are different products. Don’t connect for investment (but for tax saving the maximum limit is Rs.1,50,000). Regarding how to maximize, I have already explained in the above post. Refer it properly.

  23. Hi,

    I am having ppf account as father self /minor , I am paying my ppf from own saving account and minor ppf from HUF account I am depositing with both account 1.5 lakhs now question is do I able to avail interest on ppf for me on 1.5 and for my minor account on 1.5 as well after 15 years?

  24. My daughter guardian is my wife for PPF account..she is not working.This account has 1.5 lakhs deposited.
    Can I open a separate ppf account for me to deposit another 1.5 lakhs..

    My wife has some rental income in her bank account on monthly basis.

  25. ISir,
    My wife is house wife.She guardian for my first daughter’s PPF and provided her Pan number.invested 1.5 lakhs this year.
    To maximize the investment,is it allowed to open a new PPF account in my name with my pan details for maximum investment?
    For 80C exemption I will not use this PPF.

    Note:My wife receive some rental income in her bank account.

  26. Hi Sir, I am house wife and my husband have an Nre status in bank account but my status is resident in India. So , can we open PPF account on my name?

  27. Amit Kumar Agarwal

    Hello Sir,

    Please clarify my below query :

    I and my wife have both invested 75,000 rupees individually in my wife’s PPF account for this financial year making the sum to 1.5 lakh rupees. My wife’s PPF account is having her PAN card linked to it. I am not having any PPF account and my PAN Card is not linked to any of the PPF account.

    Can we both claim tax exemption under section 80C for 75,000 rupees individually?

    Also, Please let me know what all documents do I have to submit for my investment in my wife’s PPF account?


  28. Hi Basavaraj,

    Me and my wife both are working, Her taxable income is below 5L after claiming 80C deductions via tax saver FD.

    I want to deposit 50k in her PPF account and 50k in LIC and claim that for my tax benefit by paying the amount from my income. Is this allowed? How can I prove the source of the mentioned investment is from my income?

  29. Dear Basu,
    I have PPF account for my minor child with my details as guardian. Another PPF account for 2nd child is linked with my wife’s name as guardian. Can children’s grandfather deposit 1.5 lakh each on these two accounts? Are there any legal implications? Do we break rule by doing this?

  30. Sir – I and my wife each have separate PPF accounts. I will open one in my minor son’s name with me as guardian.

    Background: –
    My wife PPF account her pan card linked
    My PPF account my pan card linked
    My Child ppf account (should i link my pan card?)

    1. So now i invest 1.5 in my minor childs Account
    2 . I invest 1.5 in my wife’s account
    3. My wife invests 1.5 in my account.

    So interest would be paid for 4.5L every year we are investing. Am i right here.

    Now coming to tax part. How should we claim tax exemption..
    MINE –
    Should i claim tax exemption for 1.5 invested in my child’s account or claim tax for 1.5 L invested by my wife in my account.
    Should my wife claim tax exemption for 1.5 for the amount i invested in her account or the amount she invested in my account?

    Thank you!

    1. Dear Avinash,
      Yes, you are right. Yes, they will ask for a guardian PAN card. Regarding tax part for YOU-You can claim on any one as the maximum limit is Rs.1.5 lakh only. Your wife can claim the investment did in her account by you.

  31. I have a query regarding how the contribution (source of deposit) is done for PPF account of self and my wife.

    Background info:
    -Joint savings account with my wife in SBI.
    -Individual PPF accounts (self and wife) in SBI.
    -Every year, I transfer money, for PPF deposit, from SBI joint savings account to both PPF accounts.
    -Passbook entry of my wife shows “Transferred from “.
    -PPF deposits have been successful over the years, to both the PPF accounts.

    -Will there be any problem to my wife’s PPF investments later as the money deposited is transferred from SBI joint savings account (and not from her account from another bank)?
    -Should I ask my wife to transfer her PPF deposit every year from her another bank’s savings account?


      1. Thanks Basavaraj.

        OK, so I can transfer PPF deposits from our joint savings account to our individual PPF accounts.
        My wife’s passport entry is shown as “Transferred from primary account holder”.

  32. Hello Basu
    I have gone thru this article and understand that the trick is to depositing amount in your spouse account to get max benefit. (and not your own account) . The question is “does PPF dept or service provider (like banks) has ability to identify who has deposited? . I don’t see on account statement, who is depositor. It may not be logged in the system at present.
    I believe the only trigger they have set “not to accept more that 1.5 lakhs in any PPF account per year” . So PPF system may not be that intelligent to catch this at present, until, each account have properly linked to Adhaar or valid PAN , across all service providers, to sum up PPF amount per year under per PAN / Adhaar . I think till that time , one family can be benefited with this trick :).

    Now a days they have started to see that even guardian also declare his PPF account number in minor’s PPF account opening form.

      1. Thanks Basavraj.
        Can we apply same trick on post offfice MIS where max investment limit of ( at present 4.5 lakh individual/9 lakh for joint) can be increased to 18 lakhs for 4 accounts for a family with 2 minors?

  33. Thank you. I have understood clearly from your article. Not many are aware of this. Not much info regarding this. I wanted to be doubly sure that what I am doing is as per rule and I will not have problem in getting back my money with interest ?
    Thank a lot for your time

  34. Except yours , pattu sirs and Ashal sirs I couldn’t get any other article on googling. So wanted to here about real experience where it has been done and interest has been credited you hassle-free
    Thank you

  35. Sir, do you have experience either self or with your clients where 6 L was deposited and interest credited in all 4 accounts. Asking again to confirm because I don’t want to mess up with my inv and lose interest on 3 L.

  36. Sir, I am planning to deposit 1.5L in my spouse ppf acc and 1.5 L in minor ppf acc in which I am guardian. The same will be done by my husband also- he will deposit 1.5 in my acc and 1.5 L in minor ppf in which he is the guardian. This way we will be investing 6 L.
    Can this be done ?
    Will we get interest for 6 L? I am asking because there is lot of confusion in this aspect? Sir do you have experience with any of your clients doing this ??

  37. Hi sir,
    I am an NRI. I have my own ppf account. I have my wife and minor child in my family. My wife has also separate own ppf account. They are not NRI. I know that I can maintain my ppf account till maturity as per NRI rules.
    I am only the earner in my family.
    1. Can I open my child’s ppf account me as a guardian?
    2. Can I deposit 1.5 lac to my child ppf account? I am aware that maximum limit is 1.5lac together my and my child’s account.
    3. Can I contribute another 1.5lac to my wife’s ppf account?
    My intension is not to get any benefit of 15C here. But my main intension is to reduce my NRE account money at least 3lac in a year to my child and wife ppf account so in future my tax liability will get reduced and it will be distributed to my wife and child (when become major)

    Please let me know my above thinking and planning is valid and genuine which will help me in future.

  38. I am planning to open a new ppf account for my minor son,and would contribute Rs 1.5 lakh from our HUF account.This will be in addition to my own ppf account contribution of Rs 1.5 lakh per year.My question is whether total contribution of Rs 3.0 lakh will qualify for seperate ppf accounts ie myself and my minor son ?

  39. Hi,, I’m having PPF account & also I’m guardian of my minor sons PPF account…in my PPF account my mother is contributing 1.5lac & taking benefits of 80c in her income tax return,,,myself contributing 1.5lac in my son ‘s PPF account & taking benefit of 80c in my IT return…..my wife is earning & contributing to her PPF account…so is it a valid & legal way to do it ?

  40. I have ppf in icici and my wife have in sbi.

    My son7 years old have ppf in icici with his minor PAN CARD and my daughter 4 years ols have ppf in hdfc with her minor PAN CARD.

    As per my understanding we 4 family member have individual PAN CARD so we can invest 1.5*4= 6lac and can cliam tax benefit in 80c

    Kindly confirm if I m wrong

  41. One more question. Is there any distinct advantage in Sukanya samruddhi yojana over PPF when opening for a girl child? They seem to pay 0.5% more but overall long term benefits?

  42. Hi,
    I was reading at another place that only 1 minor account can be opened with 1 guardian. Is it true? If a person has 3 children(all minor) they can’t have PPF for all? Thanks!

    1. Dear Naveen,
      There is no such hard rule. However, again the same rule of maximum deposit applies here also. Combined of his own and the accounts where an individual is a guardian, the total limit is Rs.1.5 lakhs only.

  43. Dear Mr. Basavaraj,

    I liked your article and your understanding on this subject.

    I am confused about the 3 cases you have explained in the image, and how can they deposit more than 3 lacs combine.

    My case – Me and My wife both are working and both have their individual PPF accounts. We have 2 minor sons – both of them have their PPF account. I am the Guardian of one of my minor son and my wife is guardian of other son.

    As per my understanding the total investment we can do in your accounts (all 4) is maximum 3 lacs. (1.5 lacs * 2). So in your example you have explained they can deposit 4.5 or 6 lacs. How this is possible?

    I am missing anything here? Please explain.

    1. Dear Ashish,
      The combined limit YOU can deposit your own and your minor kid account is Rs.1.5 lakh. However, it is nowhere written that your wife CAN’T deposit into your PPF account. This is what I have explained.

      1. Hi Basavarj,

        Even if wife deposits to husband’s PPF account, total limit on the account can not be 1.5L in a financial year, how can the total limit can go that limit in the given examples..

        As per my understanding, maximum investments in a PPF account is 1.5L only either spouse deposits or not..I mean it can be either of their money, but still max limit is 1.5L…Please correct me if I am wrong.

          1. does that mean if just Preethan and Dhanya (no kids) can invest upto 6L into PPF?

            Preetham invests
            1. 1.5L into self PPF account
            2. 1.5L into Dhanya’s PPF account

            and Dhanya invests
            1. 1.5L into self PPF account
            2. 1.5L into Preetham’s PPF account

            total 6L?

            on your other post (all-about-public-provident-fund-ppf) you have mentioned

            “Any amount you deposit in your PPF account more than the prescribed limit of PPF for that particular year will not earn any interest.”

            Does it mean the amount which was deposited by Spouse is not earning any interest?

  44. Hi. I am a NRI. However my wife and child are at India. Can i open a PPF account for my child?
    They came to my place once in a year for 2 months only. I am not sure whether they are also NRI or not.
    Please suggest.

  45. Hello Sir,

    My wife is working and she submits her own IT returns every year though she doesn’t come under the 5% slab, so she has zero tax liability.
    I want to open a ppf account on her name and I want to contribute 1.5lacs in that account and want to claim tax deduction u/s 80C. I don’t have PPF account on my own name. Can I do that? Or since my wife has sourse of income and submits her own IT even though I deposit money in her PPF I can’t claim tax deduction?

    Please suggest

          1. VIJAI KUMAR GUPTA

            Dear Sir,
            My wife is working and i am also working and i dont have any ppf account.But i want to open a ppf account for my wife and want to invest 25000 in her ppf account.Will i get tax benefit for my investment in her account ??
            I dont want to open a PPF account for self.I want to invest her money into her PPF account through my saving account.As my parents are my dependent and i have not money to invest in my own ppf account.

            Please suggest will i get tax benifit or not??
            Vijay Gupta

  46. Sir,
    As per your guidance, we can invest 1,50,000 every year to my spouse and self accounting 6.0 lac and claim 1,50,000 deduction in each case. The intrest pay out is limited to 1.5 lac or for 3.0 lac in each PPF account.
    Also can I open PPF account in my son who is major and he is studying now. I would like to deposit 1.5 lac in his account by a way of transfering the amount to his account through Gift and later transfering to his PPF account .
    Pls guide

    1. Dear Manjunatha,
      By the set up I explained above, you are not breaking any rules. Hence, no question of interest credit. If your son is major, then it is considered as separate account but not clubbed with your account for the investment purpose.

  47. Sir,
    I have ppf account and i submit 1.5 lac every year which i claim for tax benefit. Can i open seperate ppf account for mybminor kid and deposit 1.5 lac in it. I understand that i wont get tax benefitfor kid ppf. But will he atleast get interest on his account

  48. Can HUF Deposit on behalf of Minor into his PPF Account?

    Gift to Child by Grandfather/or any other person, if deposited into Minor child account, will it be clubbed with father’s income?

    According to your example, if non-Guardian spouse deposit money into minor child account, clubbing provision will not be applicable?

    1. Dear Adarsh,
      HUF are not eligible to open the PPF account. “Gift to Child by Grandfather/or any other person, if deposited into Minor child account, will it be clubbed with father’s income?”-Gifting rules applies and hence not eligible for tax under the head of father. “According to your example, if non-Guardian spouse deposit money into minor child account, clubbing provision will not be applicable?”-YES. Even if applies also, PPF interest is totally tax-free. Hence, no tax liability on PPF account holder.

  49. Hi sir I just want know that.. If one kids ppf account was already opened with mother. Can we change it from one bank to another bank ?
    And can we change the guardian? Like behalf of mother can we add father in that ppf account?

  50. Dear basu…i hv one ppf account in my name and one ppf account in my wifes name. We deposit 1.5lakh each in ppf account on our own as we both are earning…
    Now my question is ,
    Can i open a ppf account in my minor daughters name for whom i will be guardian and deposit 1.5lakh?
    And similarly can my wife do so for our minor son ?

  51. if husband had his own ppf account and he had deposited 1,50,000 in that. in the same year he had also deposited 1,00,000 in her wife’s ppf account. now my question is that the husband will get deduction under 80c upto 1,50,000 but can wife also get the deduction of 1,00,000 under 80c. wife is a salaried person.

    1. Dear Kiran,
      You can claim the deduction from total income in respect of contributions to any PPF belonging to self, spouse or any child. However, the source of funding to wife’s account is not from her own earning. Hence, she can’t claim the deduction.

  52. Anirban Banerjee


    I have a ppf account and also the guardian of the ppf account of my minor son. Question is the interest that is credit in my sons ppf account, does it become an income for me and has to be shown in my tax return as income from other sources or is the interest tax free like the interest i receive in my ppf account ?

  53. your article was very clear, thanks. My question is as follows. I do not have a ppf (but EPF with my company), however am the guardian of my son’s ppf acc. My wife has a ppf acc and guardian as well for my daughters acc. Wife is not earning, what is the maximum i can invest. Am not bothered about 80c deduction.

    1. Dear Thiru,
      You can invest in your son’s account up to Rs.1.5 lakh. Along with this, you can deposit into your wife’s PPF account for another Rs.1.5 lakh. She can (from her income) can deposit in your daughter’s account up to Rs.1.5 lakh. But these many PPF accounts really a NEED?

  54. Hello,

    Invested in minor PPF & SSY and earning exempted interest of 1500 INR. Additionally, invested in taxable fd in name of minor earning interest of 1500 INR. Net income from minor investment is 3000 exempted and 1500 taxable.

    How to show in ITR and will there be any tax liability?

  55. Hi,
    My wife and my Son has PPF accounts. My wife is Guardian for Son’s Account.
    I am depositing 1.5L each(total 3L)into both accounts. As per your logic, this should be FINE.
    I am not bothered about tax claim.

  56. ved prakash sharma

    . Excellent and helpful post. I however have a query. My minor granddaughter has a PPF account under the guardianship of her father(my son in law). If my daughter the child’s mother deposits money in this PPF account can she avail tax benefits for her investment. The total investment in minors PPF account and mothers own account is below 150000.
    Appreciate your reply.


    Sir things are very clear after reading your articles yet i have some fears to avoid future troubles.I and my wife both are working and have ppf accounts seperatelyThus we invest total 300000 each year.We have one ppf account opened in the name of my son.After investing our[husband and wife] 150000 seperately with our own individual income,can we both invest 75000 each from our seperate accounts to our son’s ppf so that this investment can become 150000?


      Now i read all the questions and came on this conclusion that we cant do like this.i forgot to write that this is i who is the guardian of the son.since we are investing in ppf from our own accounts seperately we cant invest any more in our son’s ppf.but from next financial year we shall invest in ppf account from each others account instead of investing from our own accounts.And as far as my son’s ppf is concerned it will be invested by my wife instead of me since i am the guardian.Am i right sir?


        sir this has confused me.does it mean that my wife [from next financial year as i have refered to] can invest only 1.5L from her bank account in total under my ppf + my son’s ppf [whose i am the guardian]?and i can invest 1.5L only from my bank account into my wife’s ppf.so the total investment is only 3L .This is the confusion.kindly specify.

        1. Arvind-I think you confused again. Refer the logic I explained. Your wife can deposit into your account and YOU can deposit into your kid’s account. By doing so, the maximum you can do in two accounts is Rs.3 lakh.

  58. I and my wife are both earning and already invest 1,50,000 yearly each in PPF.
    1) If I invest another 1,50,000 from my income in the name of my minor child, will that amount earn interest?
    2) I understand that under 80C, I can still claim only 1,50,000 deduction, which is ok. But, interest will be paid in my child’s account, which will be exempt on withdrawal on maturity?
    3) Can this same account be continued when he becomes a major? Interest will keep compounding in the same account after it is converted from minor to major?

  59. P K Mukhopadhyay

    I have deposited 75000/- in my wife’s PPF account – she is working; can she claim tax benifit from her employer?

  60. Here is my case study, self earning, wife(house wife) and child Minor.

    I have been transferring 1.5L to my wife’s account towards PPF. PPF is on wife name, she transfers to her PPF account.

    Can I open PPF account on my name and transfer 1.5L?

      1. Thanks for a quick response!

        I was considering 1 account for a family!

        One more doubt,
        For a family with wife not working 3L is max?? Or is there anyway I can do have son’s account and increase from 3L to 4.5L

  61. Thanks for the explanation of the rules.

    Referring the image, in all 3 Cases, it means the spouse can deposit 150000 into each other’s account.
    Does this mean that each spouse (major individuals here) will have deposited 300000 in their own PPF account?
    i.e. Preetam deposited 150000 into his account
    and Dhanya deposited 150000 into Preetam’s account
    so Preetam’s PPF account has 300000 deposited in a FY.

      1. Thanks.

        Sorry, I need bit more clarity.

        Assuming both Preetham and Dhanya are working and have single kid (whose guardian is Preetham).

        -Preetham deposits 1.5L into kid’s PPF account. (So Preetham can not deposit any money into his own PPF account now.)
        -Preetham deposits 1.5L into Dhanya’s PPF account.
        -Dhanya deposits 1.5L into her own PPF account. (Fund Transfer from her own savings account.)
        -Dhanya deposits 1.5L into Preetham’s PPF account. (Fund Transfer from her own savings account.)

        1. What is the total amount deposited into each PPF account in a single FY?
        Preetham 1.5L
        Dhanya 3.0L
        Kid 1.5L

        After I wrote the above in a notepad, I thought to read comments, if any, related to 4.5L or 6L and got more clarity.

        Does online banking (i.e. Fund Transfer to SBI/ICICI Bank PPF account) accepts such transfers into PPF accounts where the total deposit would become 3.0L in a single FY, considering there is a limit of 1.5L?
        If systems do not accept this, then I think this rule/trick is of no use.

        In general, to all PPF account holders, has any one tried this 3.0L story i.e. able to deposit 3.0L?

        1. Vi-Once Preetham deposits Rs.1.5 lakh into Dhanya’s account, then the limit is over. She no more deposit again into her own account for that year. However, Dhanya can deposit into Preetham’s account. Because his own PPF account not crossed the limit of Rs.1.5 lakh. Hence, in all they can invest up to Rs.4.5 lakh. Regarding online acceptance, it is up to bank to decide.

          1. Thank you for the clarification. I think I understood the 3 Cases now.

            (So the story of 4.5L or 6L needs to be verified and not 3.0L :-))

  62. I opened a PPF A/c (maintained by SBI) in my minor daughter’s name ( her date of birth is 26.09.2002) on 22.03.2003. with me as her father & natural guardian. Since then I have been depositing money in this a/c regularly each year.
    Now, after the expiry of 15 years when I went to claim the supposed matured amount after 31.03.2018., the bank branch is saying that the maturity period is showing to be 31.03.2020 in their servers & that I can’t withdraw any sum before that date also. This is the opinion of the Chief Manager of the branch with whom I met yesterday.
    So, my question is whether this is true that a minor’s PPF A/c is not matured before he/she turns major, & if this is indeed the truth then how does it mature on 31.03.2020 when my daughter is still a few months away from attaining majority? & how shall we be able to withdraw the amount? Can it be credited to my savings a/c (in the same branch) or need I open another savings a/c in her name as a minor?
    Please clarify Sir. Regards

  63. I am nri working in gulf and my wife and 2 minor kids lives in India . I am the only person working and my wife is a house wife with no income…. if I deposit 1.5 lake in my wife saving account and she use this amount for the ppf account of my son ppf account I think this is not a problem. But my question is can I deposit in the ppf of my wife from my nre account ? Because as I cannot have a ppf. I need your advice to make maximum investment in ppf …

      1. Thanks Sir for your quick reply…. it means in my case I can deposit 1.5 lakh in my wife ppf account from my nre account and the money which I send in her saving account is a gift to her and she can use that money to deposit 1.5 in her son account. So I can have 3 lakh investment, and how about me depositing in my daughter ppf account from my nre account?
        Me 1.5 to wife ppf account
        Me 1.5 to daughter ppf account
        Wife 1.5 to son ppf account

        But the source of all these funds will be my myself from my NRE Account….. please advice

          1. For now only my wife have ppf account…. my two kids don’t have ppf…. I want to open ppf account of both or anyone of them as per the possibility….
            First…I know I cannot be the gaurdian of my kids ppf account as I am nri….
            second…. my wife can be the gaurdian of both kids but the problem is she can deposit max 1.5 lakh in total for her and her kids.
            So if I understood well….. I can deposit 1.5 lakh in my wife ppf and my wife can deposit 1.5 in total for both of my kids ppf as a gaurdian….

            So correct me if I am wrong max I can do an investment of 3.0 lakh annually….
            I need your advise for the possibilities of investment for my family in ppf…
            and I will add up as an nri …. my income is totally tax free in my NRE Account

            1. I think you can’t deposit 3.0 but only 1.5 lakhs per year. as a major (resident) your wife can cumulatively deposit only 1.5 Lakhs per year (incl her a/c, and minors/dependents a/c).

                1. Basavaraj,

                  I think issue here is not who deposits in whose account, issue is who is owner of the account. As per rules, to the best of my understanding and as noted below, a major resident can deposit only upto 1.5 lakhs incl his/her PPF A/c plus his/her minor’s a/c. Please refer the “combined” in below statement.

                  Deposit limit
                  The maximum amount that can be deposited in a PPF account in a given financial year is Rs 1.5 lakh. You can open a PPF account in your own name or on behalf of a minor of whom you are the guardian. This is the combined limit of self and minor account. If the contribution exceeds the given limit of Rs 1.5 lakh, the additional money will not be eligible or any tax deduction or carry any interest.

  64. Abhishek barli

    Hi.. I have a small query…I don’t have a PPF account but 1.5 lakhs is exhausted through life insurances and mutual funds in an year.. My wife has her own PPF account and she has already invested 1.5 lakhs in her account for this financial year.. My query is wat is the maximum she can invest in my 5 year old daughter PPF account through her earnings ?pls reply..

  65. Vishal Galhotra

    Please suggest if I have a PPF account in My name, wife’s name and (house wife) and my kid’s name (minor). Can I deposit 50k each per year and claim 1.5 lakh under 80 C for myself. Also after 15 years from now when my kid will be major and earning, will he be allowed to withdraw past investments and be allowed to continue investing further for his own claim under 80c there on

    1. Vishal-You can claim so under Sec.80C. However, the combined limit of you and your minor kid’s account (where you are guardian) should not be crossed to Rs.1.5 lakh in a financial year. Once your kid turn major, then yes he can use and withdraw the money as per his wish (including investment).

  66. I am shweta here..I have a new born baby in whose name is wish to open ppf account in which I will a guardian n also I wish to open a ppf account in my individual name. If I deposit around 50k in each account every year can I claim tax rebate for both the accounts

  67. Amit Kumar Tiwari

    My Family:
    1. Me (Working)
    2. Wife (Not Working)
    3. Daughter (Minor, not working)

    Me and Wife both have our PPF accounts, and deposit 1.5 lakh every year (say in each others account). Now can my wife open a PPF for my daughter and deposit 1.5 lakh to get extra investment and interest? Please clarify?

    I am worried if this is not true and after 15 years some issue happens it will be a big trouble?


      1. Amit Kumar Tiwari

        basis your suggestion i will open the account. i have yet not opened thinking it is not possible to invest more than 3 lakh in given combination.

        i am salaried and my wife has some interest earnings from family property

        1. Amit Kumar Tiwari

          I read all the comments and now my understanding is clear, and here it is:

          I will invest 1.5 lakh in my wifes ppf and my kids ppf (me guardian) and she will invest 1.5 lakh in my ppf. this way we will invest 4.5 lakh per annum combined.

          I am just not sure whether these SBI oldies will understand this

            1. Amit Kumar Tiwari

              Yes my wife files annual ITR where she has interest earnings “gift from relatives”. Hope that should be fine.

                1. Amit Kumar Tiwari


                  I cross checked with another personal financial advisory and as per them PPF investment is by PAN number. It does not matter who pays for it. Husband can pay for wife’s PPF irrespective of whether she is working or not working. Non-working wife may even pay for own PPF (e.g. through the gifts she gets from parents). But, once the investment is made, then it is investment for wife’s PAN. It has nothing to do with husband who paid for it. It does not matter who paid for PPF investment. The above is our understanding and we stick to it. If you feel comfortable with what Basunivesh has suggested, then you can follow their advice and invest in PPF accordingly.

                  Can we not clarify this with some bank official or some regulatory authorities in the interest of general public. Or if you have any confirmation from them?


  68. BASAVRAJ JI nice blogs to read and clarify queries.
    I read your earlier posts but still confused i have 2 kids. i have opened ppf account for me, my wife & both of my kids.
    kids being minor i am the father gaurdian by default no other choice to make my huf as gaurdian.
    Now, i have been depositing :
    deposit Rs.150000.00 my wifes ppf account from her bank,
    deposit Rs.150000.00 kid 1 ppf account from my bank,
    deposit Rs.150000.00 kid 2 ppf account from my huf,
    deposit Rs.150000.00 my ppf account from fathers huf
    every year since birth of my both kids 10 and 12 years of whom i am the leagal father and gaurdian by default
    i have been claiming under section 80 c for all the previous years.
    but from your blog came to know that being gaurdian of kids i have made mistakes under claiming the deposits under section 80c, now beacause aadhar and pan is to be linked with all the accounts this question arrises. Some Charterd accountant are saying you can deposit Rs. 150000.00 from huf’s bank and claim in huf return and deposit 150000.00 from your bank account and claim in your return, but as per your blog – being leagal gaurdian i can not claim the same and even not deposit 150000.00 in each account being gaurdian to my kids account . Please calrify. Thanks

  69. Hi
    Me and my wife are employees. I have PPF account and investing for the past 4 years and claiming deduction. My wife don’t have PPF account and this time she wants to invest in my PPF account. Is she eligible to claim deduction under section 80 c for investing in my PPF account? If so, What’s the procedure? Please explain ..
    Thank you




  72. Sir, I just wanted to enquire that can I deposit 150000 in my own PPF account and also in my wife’s PPF account 150000 and vice versa my wife does the same act. Total 3 lacs deposited in both of our PPF accounts in a single financial year. No kids account. Is it possible because the bank people are not ready to except deposit more than 150000 per account. Please clarify sir

  73. Sir,
    With reference to Rs 6 lac investment example given above what I understand is
    Family must need 4 PPF accounts i e
    Husband, wife,one minor kid with husband as gargian and another minor kid with wife as a gargian to invest 6lacs in year. Am I right Sir?
    Reason to ask this is I got confused by query of Mr.Raj and your reply to it in above discussion.

  74. Hi Basavaraj,

    Thanks for sharing the information.

    Me and wife have invested in MF(SIP) for below funds and also we have FD(Tax saver) of 5 lakhs.

    Franklin Build India Fund
    Franklin India Prima Plus Fund
    Kotak Infra & Eco Reform Fund
    Mirae Asset Emerging Bluechip
    SBI BlueChip Fund-Reg(G)
    UTI Transportation & Logistics Fund(G)
    Franklin India Prima Plus
    SBI BlueChip

    Even I am having PPF account with my name but my wife doesn’t have.

    Now we have surplus of 15K/month, do you feel we can create PPF account for my wife(with minor account for my son) and start investing on this.

    Can you please suggest is it good to invest in PPF.


  75. Hello Sir,

    I caught something interesting here, let me know if it holds correct ??

    One can invest 1.5Lac in own (or as guardian combined) + 1.5L to wife account = 3L
    Now same Wife can invest 1.5L to own + 1.5L to husband = 3L

    So total per family its 6L (for a couple irrespective of they have kid or not) let me know if my understanding is correct ?

      1. Thank You, as most cases it was showing 4.5L or 6L in case they have 2 kids. So I was trying to clarify even its possible with 1 kid or without kid as well ?

        1. This may be debatable. As now all accounts are computerised and deposit in any single given account above 1.5 lacs during any FY is not accepted, irrespective of who deposits it. I was told in SBI that if any amount in excess of 1.5 lakhs in a year will not be accepted by the system. Need this to be clarified.

          1. Its good investment strategy for those who hold money in SB / FD accounts. With lower interest rates in FDs & added taxes on FD interest, make PPF more attractive but not comparable to MF, equities or other investment options.
            Whereas with market at peak one can be only optimistic while investing or do SIP for longer duration, but again the market is flooded with so many MF options becomes very difficult for one to take decision and expect their decisions will always be correct due to multiple factors involved.
            In recent there is herd mentality among many trying to dump money without understanding the whole model, at any possible option hence stocks are increasing in price without real growth factors. Despite some orgs posting good results stocks get beaten & some posting bad results get cheer up.
            So better to diverse with keeping in mind risk factors & underlying fundamentals.

            1. Raj-No product on this earth is BEST or WORST. You have to use the products or assets based on the financial goal. Thinking FD rates are low and market high and hence PPF is best does not mean you park all your 100% into PPF. Same applies to FDs or Equity Products.

  76. Hi sir my query is if a person has invested 1 lakh rupees .in 13,14,15 yr regularly in ppf ….can a investor withdraw all his money after completion of 15 yr..nd if yes than how govt will able to give tax rebate on 13,14,15 yr.bez on that amount their is nolockin ..nd how govt would calculate the intrest ..

  77. Hello Sir,

    Just a clarification:
    I am the guardian of my child ppf account.
    – I invested Rs 1,50,000 in my PPF
    – I invested Rs 150,000 in my child PPF
    – My wife invested Rs 1,50,000 in her PPF

    So my wife is taking Tax benfit – perfectly ok.
    I am just showing my PPF amount to claim tax benefit (not my child) but interest will be paid on both – my PPF & my child’s PPF —- Am i right, here?

    1. Anubhav-You are not allowed to invest in total Rs.3,00,000 into your and your kid where you are the guardian. The combined limit for these two accounts is Rs.1,50,000 only. If authorities come to know, then you lose the interest on any one account. Hence, abide by rules.

      1. Thanks for the feedback Sir ….. I was not aware of this PPF rule.
        I think i will not be able to withdraw the money for some years (PPF withdrawing rule) but i will take care of it from next financial years

          1. Sir, but if i take your case 1) to maximise the investment
            I will invest into my Kid’s PPF Rs 1.5L ( i am guardian) & my wife’s PPF Rs 1.5L
            And my wife will invest in my PPF Rs1.5 L
            so total will be 4.5 L without any breaking of Rule.
            Whether my understanding is correct??

            Also when i say i will invest to my kid & wife PPF but not mine it means i can give my signed cheque for investment or do online transfer to my wife & Kid PPF but not to mine. For my PPF my wife will do the same, right ??

            1. Anubhav-Yes, that you can do. You can invest in your kid’s PPF account. Let your wife invest in your PPF account and you in her account. You can either give the cheque or transfer through online but source of funding should be perfect as you said.

              1. SANJOY MAJUMDER

                It is not clear to me, if my wife is not earning anything then how can she invest in my account? Is there any option to my wife that she can do without falling in trouble?
                Thank you,

              2. That I can deposit up to a maximum of Rs150000 per year in my spouse’s account and the interest being tax exempt, clubbing is ineffective, is understood. Kindly advise the fate, for the purposes of taxation, of entitled withdrawal of proceeds by her on (i) maturity (ii) after 7 years (iii) during five year extende periods after 15 years. Thanks.

      2. It may sound lame question with so much discussion on topic,
        – If child’s account is linked with Mother’s PAN card means mother is guardian & if linked with Father’s PAN card father is guardian ?
        – If currently father is defined as guardian can it be updated to mother’s name or need to open new account? how ? (reason as you said one can invest max 1,50,000 into his + child) account.
        – How can the guardianship be defined for kid’s PPF, when both of them are guardians in real life ?

  78. I did not get the 6 lakh calculation in the last example. Father will deposit 1.5 lakhs in two accounts a) First Child b) Wife. He will not deposit anything in his own account ? correct me if I am wrong..

    same way mother will deposit 1.5 lakhs in a) second child b) Husbands account.

    so u said .. all added will be 6 lakhs.. but if I see individual contribution from Father or Mother is 3 lakhs. 80 C allows only 1.5 Lakhs .. right ?

    So do u mean that .. the total investment will be 6 lakhs rupees which will be eligible for earning PPF interest rate but tax exemption can be taken only on 3 lakhs ?

    please clarify

    1. Aditya-Husband and his kid’s PPF combined limit is Rs.1,50,000. Same way, wife, and her kid’s PPF account is the limit of Rs.1,50,000. So here the family invested Rs.3,00,000 in total. Now husband and wife are free to invest in their spouse PPF account. Hence, another Rs.3,00,000. In total, the family invested Rs.6 lakh.
      Claiming tax benefits under Sec.80C is a different issue. What I am trying to say is how can you maximize without breaking the rule.

    2. 1.The deduction under section 80C is available to each Individual assesee
      2. Deposits to individual PPF account/s are restricted to up to Rs 150000 per financial year.
      Hence the deposits can be made accordingly to avail tax benefits by individuals within the deposit limits per PPF Account. Hence it will be prudent for an individual to deposit only Rs 150000 per year to a single PPF account.
      If additional PPF accounts are contributed to belonging to self/Spouse/children deposits in individual accounts cannot exceed Rs 150000 per FY.
      Operate within these guidelines please.

      1. Sir in my case i am seeking clarification for,

        if I invest Rs.1,50,000/- in my PPF account and
        my Wife invests Rs.1,50,000/- in her PPF account and
        my HUF invests Rs.1,50,000/- in my childs PPF account,

        then can all of us i.e. Me, My Wife & My HUF avail benefit of Section 80 C in their respective files?
        My point of doubt originates from the fact that the HUF can invest in PPF of its member and avail the benefit of sec. 80C.
        Kindly Clarify…

              1. ok.
                What if I invest Rs.1,50,000/- in my PPF account and
                my Wife invests Rs.1,50,000/- in her PPF account and
                my HUF invests Rs.1,50,000/- in my child’s PPF account,
                and only my wife and my HUF claim deduction under sec 80C in their respective accounts?

                  1. Because I have read somewhere that HUF Can Pay on behalf of ‘Any Member of HuF’ (Whether Minor or Major). So the HUF can pay PPF for its Minor Member & Can Claim deduction under section 80C.

                    1. Sir, I didn’t get your question.
                      What I am understanding is that my child is the member of my HUF. So the HUF can pay PPF for its Minor Member & Can Claim deduction under section 80C.

                    2. Thanks Sir.

                      Thus in such a scenario, I in my individual capacity can also invest in PPF in my own account but cannot take deduction under 80 C. Correct?

                    3. From what I understand by comments of Mr. Pankaj & Mr. Basavaraj,

                      If we assume Father is Guardian of Minor child’s PPF Account.

                      Father -> Deposit Rs. 1,50,000/- in his own personal PPF account.
                      Father’s HUF -> Deposit Rs. 1,50,000/- in minor child’s PPF account.

                      Which makes the total deposit Rs. 3,00,000/-.

                      Have I understood correctly? If yes, then can the Father’s HUF deposit in more than one minor child account?

  79. As per the MOF (DEA) letter No F.3(1)-PD/70 dated 24.9.1970 and N.S.C. Nagpur letter No. 12235/Tech/PPF/20-3/98
    dated: 20.7.1998,

    If contributions in excess of Rs. 1,50,000 are made during a year by the subscriber, the deposits in excess of
    Rs. 1,50,000 will be treated as irregular subscriptions and will neither carry any interest nor this excess amount
    will be eligible for rebate under Section 80C of the Income Tax Act. This excess amount will be refunded by the
    Accounts Office to the subscriber without any interest.

    Moreover as the PAN of the Guardian is given in Minor PPF account opening form, Rs.1,50,000/- is the combined limit for one of the parent and the child.

    Hence I think in a family, irrespective of the number of PPF accounts you may have, Only a maximum of Rs.3,00,000/- can be invested in a financial year.

  80. Basunivesh, nice article. One more point is if Husband and Wife puts Rs 1.5 Lakhs each totalling to Rs 3 Lakhs per year for 15 years, total invested value is Rs 45 Lakhs (Rs 3 Lakhs x 15) and along with interest that amount can grow upto Rs 90 to Rs 92 Lakhs (depending on the interest rates in future)

  81. I think in case of a minor child account the total sum of deposit in a year is maxm 150000 in both the accounts. Mean the total amount in both accounts is taken sumed up and maxm sum is 150000

  82. Dear Sir,
    What are the rules of investment in case of NRI. I know that NRI’s are not eligible for PPF account. However, what if the husband is an NRI and the wife,child are resident Indian. The wife is not working and only source on income is husband earning.Can the wife and child open PPF account? What are the rules of taxation and maximum limit (for wife and child) in this case?
    Kindly provide details.

      1. Does this mean ,NRE can Gift their wife 3 lac
        of which she can :

        Open Self account of 1.5 lac
        And other account on her Kids name where she will be guardian of 1.5 lac

          1. But as per below illustration in Case 3.
            She can open account of child where is guardian for 1.5 lac
            And also i can gift 1.5 lac which she can use it for her own self account.

            Kindly advice

              1. I didnt understand.
                Could you explain me how do i go about it.
                I am NRI and wife is house wife.
                At present she has PPF account for which transfer to her account.
                So now if i intend to open kid PPF Account where wife is gaurdian,how should i go about it ?

                    1. Does that mean the following :

                      1. I deposit 1.5 lac from my NRE Account to her account. She then deposit in Child PPF account where she is the guardian
                      2. I deposit 1.5 Lac from my NRE account to her PPF account directly.

                      Am I right ?

  83. Dear Sir,

    I regularly contribute from my taxable income to a PPF account in my wife’s name & claim the 80C rebate in my income tax return.( this is allowed as per IT act).
    Now when this PPF account in the name of wife will mature, the entire sum received will be my Capital OR her capital?
    How will clubbing provision apply to sum received on maturity OR account closer?
    Can she further invest this money & earn from it without attracting clubbing provision to me.?

          1. So if I consider Amount contributed to wife’s PPF account as a gift given to her every year, entire maturity amount received on maturity will be her capital.

            I understood that due to clubbing provision, tax liability on income she received from my gift will be on me. But PPF earning is tax-free, hence no tax liability on me. And in turn, Entire amount receive by her on maturity will be her capital & she can invest it further suitably on her own name. Please correct me if I am wrong

            1. Kishor-Yes, your understanding is correct. After gifting and after maturity, whatever she invest from that maturity will be her income and tax liability of that will rest with her. Only PPF maturity taxation is on your head (as usual it is tax-free).

              1. Mriganka Sarkar

                Namaskar, i find your article informative. I have two kids boy 3 and half years and daughter one and half years. My wife is homemaker. Me my son and wife have ppf account. What could be the best combination for us. What may be the maximum combined depsit in FY. Kindly advise. Mriganka

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