HUF -  Public Provident Fund ( PPF ) Account

 

1.         It may be noted that PPF accounts can no longer be opened in name of HUF. Initially when the scheme was framed, it was possible for HUE to open a PPF account. The restriction on opening account in th,e’ 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.


2.         Though the notification as above did not effect the accounts which were already opened in the name of HUF, the limit of Rs. 70000/- which could be deposited by a person was made applicable to the following types of account vide Notification No. GSR 6Z9(R) dated 4/10/2002:

  1. Individual self account and account(s) on behalf of minor(s) of - which the individual is guardian, taken all account together.
  2. Hindu Undivided family account
  3.  AOP account as applicable in the State of Goa and Union territories of Dadra and Nagar Haveli and Daman and Diu.

It may be noted that vide Notification No.956(E) dated 7th December,2010,reported in (2011) 330 ITR (St.)1, the Provident fund Scheme,1968 has been amended to provide that an account opened on behalf of a Hindu undivided family prior to the 13th day of May, 2005, shall be closed after expiry of fifteen years from the end of the year in which the initial subscription was made and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him. In the case of accounts opened on behalf of Hindu undivided family, where fifteen years from the end of the year in which the initial subscription was made, has already been completed, they shall also be closed at the end of the current year, i.e., the 31st day of March, 2011 and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him.

Thus, in view of the Notification hereinabove, those HUF PPF accounts which have already completed 15 years from the date of initial deposit as on 31/3/2011 and the entire amount has to be refunded in the manner hereinabove.

 

Thus, the combined effect of the above is that HUF can no longer open PPF Account and no deposit also can be made in the HUF account.

MORE TOPICS ....

HUF -  Capital Gain Account
HUF -  Deduction from HUF Business Income
Income Derived From Funds Of HUF -Whether Individual Income Or Family Income
Gift by HUF to its Member
Gift To Minor Daughters Out Of HUF Property Prior To Marriage
Gift of HUF Property to Stranger or to any Person who is a Alien to HUF
Clubbing Provisions In Case Of Gifts Received By HUF
Applicability of Clubbing Provisions in case Karta of a HUF is a Partner in a Firm
Gifts received by HUF from Aliens / Strangers
HUF - Investment Options
Concept of Multiple HUF’s
Whether a Single Member can Constitute a HUF ?
Whether any Limit is placed on Number of Members of a HUF ?
Whether HUF- Can Be Constituted with only Female Members ?
Drawings / Expenses of HUF
Whether HUF can be a Shareholder / Subscriber to the MOA ( Memorandum Of Association)  of a Company
Whether HUF can be a Member of a Cooperative Society ?
Whether HUF can be a Partner ?
Can KARTA of a HUF enter into Partnership with another Member of HUF ?
Can There Be A Partnership Between Two HUFs?
Effect Of Death Of Karta In Case Of Partnership Firm
Whether HUF Can Be A Proprietor ?
Whether HUF Can Be A Trustee / Settler ?
HUF - Aliyasantana Law
HUF - Marumakkattayam Law
Power of KARTA in relation to HUF
Managing Members in relation to HUF
Whether a Female can become a Karta ?
Tax Planning TIPS for HUF
HUF - Meaning Of Important Term- “Ancestral”
HUF - Meaning Of Important Term- “Stridhan”
HUF - Meaning Of Important Term- “Mitakshara”
HUF - Meaning Of Important Term- “ Dayabhaga”
Meaning of the term ‘Coparcener’ of HUF
Power of ‘Coparcener’ of HUF
Difference between a ‘Coparcener’ and a ‘Member’
Whether Husband / Wife Can Constitute A HUF ?
HUF - RECOVERY PROVISIONS
‘Maintenance of Accounts’ by HUF
‘Audit of Accounts’ by HUF
Applicability Of The ‘Accounting Standards’ On HUF
Whether Merger Of Two HUF is Possible ?
Residential Status of the HUF under I.T. Act.1956
‘Coparcener Property’ under HUF
 
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