Quote "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" EndQuote
The combined limit for deposit (not just tax deduction) into PPF is 70,000 rupees per year for an individual and his/her guardians or minor children, taken together. So if Mr.X invests 40,000 rupees in the name of his child in PPF in a financial year, then Mr.X can invest at most only 30,000 rupees more in his own PPF account.
Please ask the author(s) of the article to check the rules and correct the information.
The article is very informative. However the interest calculation mentioned has raised a question. Is the PPF interest calculated on the 31st of March every year or some specified date? If it is so how is it calculated? Say I invest 20000 in it at the beginning of the year (i.e. 1st of April). Would it be the same if I invested 10000 at the beginnign of the year and 10000 on say Nov 30th making the deposits for the year a total of 20000 as in the previous case?
RE:PPF interests
by anil on Jun 15, 2006 04:26 PM Permalink
The interest on PPF is calulated on monthly product with the minimum balance between 6 th and last day of each month. So if you want to earn maximum interest deposit money before 5 th April every year or before 5 th atlaest in any month if depositing in instalments.
