Table of Contents
Can HUF contribute to PPF of minor?
The HUF, while allowed to contribute for its members, is not allowed to open its own PPF account and neither can it be appointed as a guardian for a minor’s PPF account.
What is PPF HUF account?
Initially when the scheme was framed, it was possible for HUE to open a PPF account. The restriction on opening account in the name of HUF were put into place w.e.f. 13th May, 2005 vide Notification No.
Can PPF HUF account be extended?
1. (1) This scheme may be called the Public Provident Fund (Amendment) Scheme, 2010. (2) It shall come into force on the date of its publication in the Official Gazette.
Can HUF pay lic of Karta?
HUF and MWP Act Policies: As such, premiums under such policies should be paid out of Karta’s own income. The position is the same with regard to other married male members of the HUF.
Can HUF take PPF deduction?
And while an HUF cannot open a Public Provident Fund (PPF) in its name, it can claim tax deductions for the amount deposited by the HUF in respective PPF accounts of its members.
Can HUF claim LIC deduction?
Apart from several other items provided under section 80C, a taxpayer, being an individual or a Hindu Undivided Family (HUF), can claim deduction under section 80C in respect of premium on life insurance policy paid by him/it during the year.
Can HUF have LIC?
LIC policy is taken by the karta on his life or on the lives of coparceners where premiums are financed by the HUF fund. As per the law relating of HUF, all income earned with the properties of HUF funds shall belong to HUF. The LIC policies are also effected by the Karta on the lives of minor coparceners.
Can HUF open a PPF account in India?
As per the Public Provident Fund Scheme 2019 only an individual who is a resident of India, for tax purposes, can open a PPF account and therefore HUF is not allowed to open the PPF account as per the PPF scheme.
How much can a HUF contribute to a minor’s PPF account?
Hence, the total deposit in PPF in her account and the minor child account combined together cannot exceed the prescribed limit of ₹ 1.50 lakh. The HUF, while allowed to contribute for its members, is not allowed to open its own PPF account and neither can it be appointed as a guardian for a minor’s PPF account.
What is the restriction on opening account in HUF?
The restriction on opening account in the name of HUF were put into place w.e.f. 13th May, 2005 vide Notification No. GSR 291 (E) dated 13th May, 2005 from Ministry of Finance. However, this did not affect the account which were already in existence as they could have continued till the maturity.
What are the advantages of a HUF account?
Despite accounting and managing hassles, there are tons of advantages of a HUF account. HUF can be formed to save taxes by an extra PAN card in the name of the family, legally. HUF helps with jointly owned or inherited property. You can purchase, sell, rent and lease the HUF owned property.