Interest in PF a.c. in the Name of Minor Provided guardian is also holding a ppf a.c., himself
Query regarding INTEREST BENEFIT in PPF A/C :
If a guardian is investing Rs.150000 in his PPF A/c and also Rs.150000 in his minor son's PPF A/c then whether :
a)It is legally allowed to invest more than 150000 in aggregate to both PPF accounts ;
b) If above mentioned is allowed then whether Interest on the amount deposited exceeding Rs.150000 in aggregate in PPF a/c(both) will be given or not ;
c) If given then ,whether interest would be taxable or not on maturity.
The deposit in a minor account is clubbed with the deposit of the account of the Guardian for the limit of Rs.1,50,000.
You should consider both the accounts for limit of Rs. 150000.
WRT to point b) since the limit is 1.5 lakhs for both accounts, interest will accrue on 1.5 lakh.
The interest on deposits is totally tax free.