I am the head of an HUF and am planning to deposit Rs 1.5 lakh in my granddaughter’s PPF account. Can I claim the tax deduction under Section 80C on my HUF income?
The contribution that you make into your grand daughter's PPF account will not qualify for tax deduction
I am the head of an HUF and am planning to deposit Rs 1.5 lakh in my granddaughter’s PPF account. Can I claim the tax deduction under Section 80C on my HUF income?
Suresh Kumar Narula, Chandigarh
You are the karta of your Hindu Undivided Family (HUF); you can claim deduction under Section 80C of the Income Tax towards the PPF contribution in the name of any member of the HUF. As your granddaughter will not be considered to be part of the HUF, the contribution that you make into her PPF account will not qualify for tax deduction under Section 80C of the Income Tax Act.