Here is why you want to open PPF accounts for your spouse, children and parents

Copyright © HT Digital Streams Limit all rights reserved. Money If you have two PPF accounts, you must mark one as primarily. Beeld: Pixabay summary If you want to invest more than £ 1.5 Lakh a year in the public provident fund, you can do this by giving money to members of your immediate family and investing them in their PPF accounts. If you want to get the maximum possible interest for the year in your Public Provident Fund (PPF) account, April is an important month. If you invest £ 1-5 £ 1.5 lakh in PPF, you are entitled to the interest of the full year, as the interest per month is calculated at the lowest balance in the first five days of the month, and April is the beginning of the financial year. However, you can invest a maximum of £ 1.5 lakh in PPF in a financial year. However, there is a solution. If you want to maximize PPF investment, you can do this by giving money to your spouse, children or parents and investing it in PPF accounts you have created for them. Also read: How to withdraw funds from PPF or even close the account prematurely “It is possible to donate money to immediate family members and by investing their account in PPF,” said Ca Prakash, based on Bangalore. “Since interest from PPF is exempt from tax, clubs will not have an impact.” However, he added that if you contribute to the PPF account of your spouse and buy an income -generating asset at a future date, the returns from the assets will be with you for tax. If considered, the others would be marked as irregular accounts, and the interest in it would be recalled retrospectively. can open a PPF account and get the prevailing scheme. Hedge said that a guardian can only open one account for a particular minor. If both mother and father open a minor version, one of them will be considered ‘irregular’. The Guardian must designate one account as primary, and any additional accounts will be considered irregular. It is also not possible to close the account of a minor prematurely, so any irregular accounts will earn the Post Office Saving Account (POSA) until the minor turns 18. Thereafter, the secondary account is merged with the primary one. Also read: Do you plan to withdraw from EPF for marriage, education or illness? Know that the rules get all the business news, market news, news events and the latest news updates on live mint. Download the Mint News app to get daily market updates. More Topics #public Provident Fund #vpf vs PPF Mint Specials