Vakilno1.com-Question of the Day

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Question :

I have opened a PPF account in the name of my minor daughter.Can I avail tax benefits out of the contributions made into this account? When this account matures after 15 years will my daughter be the rightful recepient of the due amount?

If Yes, will any income derived by reinvesting this amount be inluded in my taxable income and under what conditions?

Our answer :

1. Yes, you can avail the tax benefits out of the contribution made in the account of your minor daughter.

2. After maturity your daughter will be the rightful recipient of the due amount.

3. If any income is earned by your daughter by reinvesting the same, it will be her income and the same will not be included in your taxable income. .

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