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Tax

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Can you claim deduction under section 80C for PPF contribution made into your major son's account?

According to current income tax laws, investment under section 80C allows a deduction up to Rs 1.5 lakh in a financial year.

ET CONTRIBUTORS|
Sep 09, 2019, 12.39 PM IST
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There are various investment options under section 80C of the Income Tax Act.
My wife and I want to open a PPF account for our major son and invest on his behalf. Our son’s taxable income is below the basic exemption limit. Can I or my wife claim deduction under Section 80C for contributions we make to our son’s PPF account?

Shubham Agrawal, Senior Taxation Advisor, TaxFile.in replies, "You can only invest in PPF on behalf of your minor children to claim deduction under Section 80C. Your son is a major, so neither you nor your wife can claim the deduction after making the contribution. However, you can explore other investment options within Section 80C to save tax."

I lost Rs 2 lakh in an intra-day trade in equity around two years ago. Can I offset this loss against my salary? If yes, how should I do it?

Jayant R. Pai, CFP and Head of Marketing, PPFAS Mutual Fund says, "You can’t offset the two. Loss from such speculation, which is carried forward to a subsequent year, can only be set off against “speculative profit” in the subsequent year (and not against capital gains). Further, such losses can only be carried forward for four assessment years succeeding the year in which the loss was incurred. This is provided you mentioned the loss in your tax return filed that year."
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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