Neutral impactCompany
₹3 lakh per year? Can parents invest ₹1.5 lakh each in their child’s PPF account? Income Tax rules, limits explained
Mint 38 min ago·8 Nov 2026, 3:11 pm
The government allows each parent to invest up to ₹1.5 lakh per year in a Public Provident Fund (PPF) account opened for their child. This means a family can collectively deposit ₹3 lakh annually, which is the standard annual limit for a PPF. The key distinction is that the total contribution for a single child cannot exceed this ₹3 lakh cap, regardless of how many parents are involved.
This investment is highly attractive for investors because the entire contribution and the resulting interest are tax-free under Section 80C of the Income Tax Act. The interest earned is also exempt from tax, and the maturity amount is not subject to any capital gains tax. For parents, this offers a disciplined way to build a substantial, tax-free corpus for their child's future financial needs.
Investors should monitor the annual revision of the PPF interest rate by the government, as this directly impacts the growth of their investment. Keeping track of the contribution deadline is also crucial, as late deposits may not be eligible for the current financial year's tax benefits. This long-term, government-backed scheme remains a cornerstone for conservative investors seeking safety and tax efficiency.
Key takeaways
- Category: Company.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
