1. Mr Pankaj, 2 queries from my side:

    Will there be any difference from safety standpoint if i open PPF with ICICI bank vs. Post office.
    2nd thing on Tax benefit u/s 80C – Can Mother claim PPF deposited in account of her Major child or minor grandchild

    • @Vikram
      There won’t be any difference from safety standpoint with ICICI bank PPF and post office PPF account.
      Mother/Grandmother can claim tax benefit for PPF deposited in major/minor child/grandchild if she paid that amount from her sources. Total deduction limit would be 1 lakh only for her u/s 80C.

      • I understand Mother can pay PPF or minor children, but such facility not allowed for Grandparents to grandchildren.
        ICICI bank FAQ says “Grand-parents cannot open a Public Provident Fund (PPF) account on behalf of minor grand-child; however, in case of death of both the Father and Mother, Grand-parents can open a Public Provident Fund (PPF) account as guardians of the Grand-child.”

        Also can u clarify whether a child can pay PPF for parents and claim such paymnet under child’d 80C deduction.

        • @Leen
          Grand-parent can only deposit amount in PPF account of their grandchildren if he/she is legal guardian of minor (as per tax rules, this would only happen in case none of the parents is alive).
          Child cannot pay PPF for parents and claim deduction. Only payment to a minor account (apart from his own) can be claimed as deduction.

  2. Hi Pankaj,

    I had opened PPF account with 30K through ICICI when the interest rate was 8%.
    1) Is the revised interest rate of 8.8% applicable for this amount?
    2) Can I add money to same account? If yes, will the revised interest rate be applicable? In this case, expiry date (15 years) will be different for each amount I add every year. right?

    Thank you very much for your help! God Bless You!!

    • @Tanaji
      1. Revised interest rate of 8.8% on PPF would also applicable to ICICI PPF account too.
      2. You can add more amount to same account. PPF account maturity is counted from date of opening account. Even if you deposit some amount in 15th year, that can also be taken out next year due to end of PPF account term.

  3. My mother is earning pension around 17k/month, is there any exemption available on the pension amount, her age is 62 Yrs

    • @Vikram
      There is no exemption available on pension amount. It would be treated as salary income.
      But as per pension is only 17k/month, her taxable income for year would be less than 2.5 lakh (non-taxable range for senior citizens). Hence no income tax would be payable.

  4. Hi Pankaj,

    Sorry for posting in the wrong column. My question is about TIER-II account in NPS. I have activated my TIER-II account and I already have a TIER-I account. I am a Central Govt employee. Kindly, I want to know how to withdraw money from the TIER-II account.

    Please let me know the procedure.

  5. Hi Pankaj,

    Is it that we have to deposit the same amount in the PPF account every year or can we deposit as per our wish and availability of funds? (varying every year)?

    Example: If I deposit 10,000 this year do I have to deposit minimum 10k every year?

    • @Ravikishan
      You need not to deposit same amount every year.
      One year you may just deposit Rs 1000 and another year Rs 1 lakh, it won’t be an issue.

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