₹3 lakh per year? Can parents invest ₹1.5 lakh each in their child's PPF account? Income Tax rules, limits explained
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Parents often misunderstand the tax-free investment limits for a child’s Public Provident Fund account.
- ✓While some think each parent can invest ₹1.5 lakh, the total annual limit remains ₹1.5 lakh per child.
- ✓This cap includes all deposits made by both parents combined, as per current Income Tax rules for PPF.
Story at a Glance
- Category
- Indian Markets
- Reported By
- mint
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
Investors sometimes misunderstand the limits when making deposits in their child's public provident fund account. Here's how much each parent can invest for their child while keeping the annual contribution tax-free.
Parents can secure their child's future and help them get a leg up financially. Here, a government-backed savings scheme, such as the public provident fund, is a safe, long-term bet. Offering 7.1% interest rate this quarter, PPF can help with your child's big expenses -- be it for healthcare, marriage, education or other aspirations.
Want to invest in PPF for minors? Here's how
Everyone is allowed one PPF account, which can be opened with a bank or the post office. For children and minor applicants, a parent or guardian can open a joint PPF account, which must be converted upon the account holder's 18th birthday. Here's how to open an account for a minor:
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