I understand that individual account limit for deposit each FY is 1 Lakh/pa. In a family of 4 with 2 kids and 1 earning parent, earlier the PPF rules permitted upto 1 Lakh deposit each , making it cumulative 4 lakhs/pa. My friends tell me that after 2011, rules have changed and total cumulative deposit per earning member cannot exceed 1 lakh . is that true ? What about older deposits ?
1 Answers
As per rules, interest won't be paid for all contribution above 1 lakh limit. This contribution includes all amount deposited in self and minor PPF accounts operated by person.
thanks to search option... i got answer to my query..
Pankaj Ji, I have doubt on your reply, I, understand that the interest will be paid on amount(on max deposite upto Rs 1 Lac/account) in all accounts but the tax benefit under 80-C will be given on Rs 1 Lac only, pl correct me if I am wrong.
Yes, max deduction under 80C would be limited to 1 lakh only.
Related