PPF Maturity Fund Transfer: Want to transfer PPF maturity fund? If you do not understand the math of tax, you may have to suffer heavy loss. In such a situation, let’s understand it.
PPF Maturity Fund Transfer: If you also want to transfer your PPF maturity fund. Before this, understand the math of its tax. If you do not understand the math of tax, you may have to suffer heavy loss. To understand this, let’s take the help of an example. Suppose your wife’s PPF is maturing in April. She wants to transfer 23 lakhs to your senior citizen savings account. Apart from this, she wants to give Rs 7 lakh to your daughter. What will be the impact on your tax in this case.
Tax math of PPF maturity
If you, your wife and your daughter are eligible for tax as residents in India. Your daughter is 18 years or older, then these tax effects will apply on receiving and transferring the amount of PPF maturity. The amount of PPF maturity which was deposited only by your wife. It will be completely tax free in her income.
Transfer as a gift
If your wife transfers the PPF maturity amount to you and your daughter as a gift, then there will be no tax on it. Since gifts received from spouses and parents are not taxable, the amount you and your daughter will receive will be tax-free in the hands of both. The interest received from the gifted funds will come under the “clubbing provision” under the Income Tax Act.
Will be added to this income
This means that this interest will be added to your wife’s income. It will be taxed according to her tax rate. However, if you reinvest this interest, then the other income from it will be taxed in your hands. There is no special exemption or deduction for payments made under indemnity bonds under the Income Tax Act.
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