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I have my own PPF account and one in the name of my minor son. Can I invest Rs 70,000 in each in a financial year?
A K Jindal
Yes. You can invest Rs 70,000 in each financial year in the PPF account of your minor son. However, when you do so you are required to give a declaration to the PPF authorities that you have not made any other deposit in any other account in that financial year. As a result of a change brought about in December 2000, this declaration by every depositor has become necessary, because of the high cost of servicing PPF account by the government. Since you have your own PPF account, the deposit into your minor’s PPF account should be routed through the minor’s savings account from which the cheque should go into minors PPF account so that your declaration will not be untrue.
I had bought some US-64 units in May 2000 at the rate of Rs 14.85 per unit. In June 2003, the UTI adjusted the rate to Rs 12 per unit. Can I calculate by indexation capital loss so sustained by me and show this loss in my Income Tax Return for the financial year 2003-04 and carry forward this capital loss?
Rahul Singh
I am afraid that you will not be able to claim the capital loss because of section 10(33) introduced by Finance Act 2003 which broadly provides for exemption to income from transfer of units of US 64 where the transfer takes place on or after April 1, 2002. No doubt, this amendment provides for granting of an exemption from capital gain on units of US 64 but the indirect effect of this is to deny the benefit of set off of capital loss on such units. It is true that units of US 64 after 1-4-2002 have not yielded any capital gain to most unit holders and therefore to grant an exemption on a non-existent capital gain is a cruel joke on the unit-holders.
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