PPF account for kids

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Talk-Of-The-Town
dhinchakrohit
Hi Friends,

Anybody contributes full 1.5L each in your, spouse and kids PPF account?

Does this get verified -
As per paragraph 4 of the scheme, an individual can contribute no more than Rs 1.5 lakh to his and the minor child's accounts taken together in a year.

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Benevolent Benevolent
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At present this is not verified by the bank, as the liability to ensure the cumulative limit is with the depositor. However many people are unknowingly depositing Rs. 1.5 lakh in their and minor accounts and the same cannot be detected by any algorithm 

Critic Critic
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I believe this is illegal, and once detected (even in future), any additional fund over the 1.5L wouldn't be eligible for any interest, and ideally any interest paid out can/will be reverted back... Similar loophole I have seen people exploiting by having more than 1 PPF account across different banks, which again is illegal and can be fined too...

OP: It's max 1.5L per PAN, so minors will get clubbed into either one of the parent's PAN... As mentioned above, technical loopholes exist, but better avoid as it's illegal and can lead into trouble later; not worth it imho.

Finance Mentor Finance Mentor
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Loophole, might get plugged as they did with indexation on debt funds some days ago...

Deal Lieutenant Deal Lieutenant
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open HUF and deposit from it

it becomes safe then

Talk-Of-The-Town Talk-Of-The-Town
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Huf can open ppf?
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