Now Reading: Delhi High Court Protects Minor’s PPF Savings
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Delhi High Court Protects Minor’s PPF Savings
The Delhi High Court has directed a father to return more than Rs 8 lakh withdrawn from his daughter’s Public Provident Fund account, along with 8% annual interest. The account was closed…
The Delhi High Court has directed a father to return more than Rs 8 lakh withdrawn from his daughter’s Public Provident Fund account, along with 8% annual interest. The account was closed in 2016 before maturity. The father said the money should be adjusted against maintenance paid to his daughter and wife, but the court rejected the argument.
A parent or guardian may operate a minor’s PPF account and withdraw money for the child’s education, medical care or upbringing. However, the funds cannot be used for the parent’s personal expenses or to meet separate maintenance obligations. Once the child turns 18, control and the accumulated balance must be handed over. Contributions to a minor’s account are capped at Rs 1.5 lakh a financial year, including deposits made by both parents and the parent’s own PPF account.
Indian Opinion Analysis
PPF accounts are governed by the Public Provident Fund Scheme, which treats the guardian as an operator rather than the beneficial owner of a minor’s savings. The account normally runs for 15 years from the end of the opening year, with extension possible in five-year blocks. Partial withdrawals are subject to scheme conditions, including a minimum waiting period and limits linked to the balance. Tax treatment also depends on compliance with the prescribed deposit ceiling. Families dealing with separation should keep education, medical and maintenance payments separately documented. The practical signal to watch is the child’s 18th birthday, when account control must change hands.
Source: livemint.com
This story was synthesised by AI from the source linked above.
