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BUILDING TAX FREE CAPITAL FOR CHILDREN!
Posted by
mukesh patel in
Save Tax - The Smart Way, Tax Clues - Ahmedabad Mirror on
Aug 30th, 2010 |
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Investment In Your Minors’ PPF Accounts
Can Weave The Amazing Magic!
Investment In Your Minors’ PPF Accounts
Can Weave The Amazing Magic!
Every parent would naturally be concerned about building capital for his or her children, which would go to ensure meeting their financial requirements for higher education, marriage, settlement in life, etc. One of the major stumbling blocks in doing so are the clubbing provisions under Section 64(1A) of the Income-tax Act, which provide that any income arising to a minor child is required to be clubbed with the income of either the father or the mother, whosever’s total income is greater. Imaginative planning through investment in PPF (Public Provident Fund), can be resorted to achieve the objective of building up ‘tax free capital’ for children and in particular minors, successfully overcoming the hurdles of the clubbing provisions. (more…)
