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Ask your queries or reply to others' queries => Discussion => Topic started by: Bhumin on November 08, 2011, 12:29:52 PM

Title: PPF Deduction
Post by: Bhumin on November 08, 2011, 12:29:52 PM


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.

Title: Re: PPF Deduction
Post by: satyanveshi on November 08, 2011, 01:27:20 PM
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
Title: Re: PPF Deduction
Post by: Bhumin on November 08, 2011, 04:02:09 PM
In the same case,

Father wants to claim deduction u/s 80C Instead of daughter .
Can he claim said deduction u/s 80C ?
Title: Re: PPF Deduction
Post by: Nilesh Kariya on November 10, 2011, 05:08:03 PM
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
Title: Re: PPF Deduction
Post by: sai prasad on November 11, 2011, 05:34:16 PM
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
Title: Re: PPF Deduction
Post by: subodh on December 03, 2011, 01:42:54 AM
i fully agree with sai prasad.
moreover, how can a minor claim exemption? whos income is assessible in the hands of parents.