Should I disclose profits as capital positive factors?

What occurs to the curiosity on PPF accounts for kids as soon as they flip 18? Does the PPF account preserve incomes curiosity if there isn’t a contribution, particularly if the kid is pursuing increased research? Assuming my son takes 4 years for commencement and two years for masters, he can be round 24 years earlier than he begins a job and earns a wage. In that case, does his PPF account proceed to earn any curiosity?

After turning 18, if I contribute to my son’s PPF account, do I nonetheless want to separate it between his and my account or can I contribute 1.5 lakh in my PPF account and 1.5 lakh in his PPF account as properly?

—Name withheld on request


As per the present provisions of the Public Provident Fund Scheme, 2019 (PPF Scheme), the minimal annual contribution to a PPF account is 500. If any account holder fails to deposit the minimal quantity, the account shall be handled as discontinued. However, even in such a case, the account holder shall proceed to earn curiosity on the stability within the discontinued account on the rate relevant to the scheme every now and then. The PPF account shall additionally proceed to earn curiosity, even after a minor attains 18 years of age. Further, as per the PPF Scheme, most of 1.5 lakh every year might be deposited per PPF account. Accordingly, as soon as your son turns into a serious, you’ll be able to contribute 1.5 lakh, respectively, to your and your son’s PPF accounts. However, please notice that from a tax deduction perspective, the deduction in your fingers can be restricted to the utmost restrict of 1.5 lakh as prescribed below Section 80C of the Income Tax Act, 1961.


I’m a 36-year-old central authorities worker. I had invested within the stock market and utilized for IPOs. I bought 12,300 realized revenue and 71,800 unrealised revenue for FY21. Should I disclose this revenue within the earnings tax return as capital positive factors? If it’s obligatory, which earnings tax return kind ought to I submit?

—Ok. Jaya Krishna


We have presumed that you just don’t have earnings from business. Any realized revenue from the sale of listed fairness shares shall be chargeable to tax as capital positive factors within the monetary year of sale. Where the listed shares are held for greater than 12 months, the identical shall be thought of as long-term capital asset and positive factors arising out of the identical shall be taxable as LTCG. If the listed shares are held for 12 months or much less, the identical shall be thought of as short-term capital asset and the positive factors arising out of the identical shall be taxable as STCG.

Any unrealized revenue wouldn’t be chargeable to tax and isn’t reportable in your tax return. Further, you will have to file your India tax return utilizing Form ITR-2. The particulars of sale and purchases would must be reported in Schedule CG of Form ITR-2 and Schedule 112A.

Parizad Sirwalla is associate and head, international mobility providers, tax, KPMG in India.

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