Dear All,
I have query regarding PPF Deduction.
Father had deposited cheque into his daughter PPF A/c who is not minor.
Deduction u/s 80C available to whom Father Or daughter ?
If entire transaction shown as gift to daughter then what is effect on tax liability of both of them?
& if shown as gift then is it taxable gift for daughter?
IS your answer diffrent if this transaction shown as Loan to daughter?
Thanks in advance.
the daughter will get deduction in all circumstances because the amount is deposited in her account. The rebate u/s 88 will be allowed only when the amount is flown from the taxable income of the assessee once upon a time. As per my knowledge, this restriction has been done away with and therefore, in all circumstances the daughter will get deduction envisaged u/s 80C
In the same case,
Father wants to claim deduction u/s 80C Instead of daughter .
Can he claim said deduction u/s 80C ?
Dear Bhumin,
As per my view on this query, Both father and Daughter can claim deduction u/s 80C . In Income tax act nowhere mention about who can avail PPF Deduction.
Please correct me if i am wrong.
Thanks
admittedly the ppf amount was deposited by father. As per sec.80C(4)(a)(i),father gets deduction u/s.80C. The daughter didnot make deposit, on her own, hence she canot get deduction. Making a gift also doesnot amount to as deposit made by daguhter.
with regards
c.sai prasad
i fully agree with sai prasad.
moreover, how can a minor claim exemption? whos income is assessible in the hands of parents.