HUF Can Invest in PPF
Yes, a Hindu Undivided Family (HUF) can invest in the PPF (Public Provident Fund) in India. PPF is a popular long-term savings and investment scheme offered by the Indian government.
As per the rules of the PPF scheme, an HUF is eligible to open and maintain a PPF account.
The HUF can make contributions to the PPF account and earn a fixed rate of interest on the deposited amount. The contributions made by the HUF to the PPF account are eligible for tax deductions under the Income Tax Act, subject to the specified limits and conditions.
The PPF account opened by the HUF will be in the name of the HUF itself.
Karta (head) of the HUF will have the authority to operate the account. The HUF’s contributions to the PPF account should make from the HUF’s income.
The income of individual members cannot be used for making contributions to the HUF’s PPF account.
It’s important to note that the HUF’s investment in PPF is subject to the applicable rules and regulations of the PPF scheme.
Consulting with a qualified financial advisor or tax professional can provide detailed guidance on the specific eligibility criteria, contribution limits, tax implications, and other aspects related to the HUF’s investment in PPF.
For more information: https://www.incometax.gov.in
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