Nominees can’t save in PF

QMy mother’s PPF account was opened in March 2003. She expired in September 2017. I and my sister are the nominees for my mother’s PPF account. We intimated the bank about the death by enclosing copy of death certificate. This has been endorsed in the passbook. However, we did not submit claim for payment but allowed the account to remain. No installment was paid after mother’s death. As per PPF rules, 15 years is prescribed for the closure but payment can be received in death cases when claim is submitted. As per PPF rules, the account is being credited with interest every year. The 15 year period will end in March 2019. Since it is advantageous to us we have not submitted claim. The account is being updated till the end of last financial year with the credit of interest. Please clarify

1. Whether the money can be allowed to remain in the PF account further?

2. Is there any limit of the claim in this case?( Death Case)

CHAYNIKA Via email

A) As per PPF Rules, no time limit is specified for claiming the amount by the nominees/ legal heirs on the death of subscriber. However, after the 15 years period is completed, a requisition for extending the duration by another 5 years needs to be made by the subscriber. You will be eligible to receive interest for the completed calendar month upto the submission of the claim. This, however, is subject to the condition that no interest will be paid after March 31, 2020, i. e. one year duration from the date of closure of the PPF account. Further, interest is not payable on any contribution made in the account after the death of subscriber. Therefore, it is suggested that you may put up your claim immediately with the necessary documentary evidence.

Q

I had to undergo an emergency cardiac treatment — angioplasty with stents — in June 2018. It costed me ` 1.90 lakh, which includes medicines worth Rs 15,000. I got a reimbursement of ` 1.30 lakh from previous employers on the basis of some entitlement calculations for retired employees. I would also be reimbursed Rs 8,000 for medicines after sometime. Therefore, I spent Rs. 52,000 extra for my emergency medical treatment. Can I claim this amount as a deduction in my income tax return for the current financial year? Kindly advise whether it is admissible. SHRENIK Via email

A) According to Section 80DDB, any amount actually paid for the medical treatment of specified disease or ailment prescribed in Rule 11DD( 1) of the Income- Tax Rules by the assessee for himself or a dependent will be eligible to claim a deduction upto ` 40,000 (` 60000, in case of senior citizens). The specified diseases or ailments under rule 11DD are:

1) Neurological diseases where the disability level has been certified to be of 40 per cent and above:

( a) Dementia,

( b) Dystonia Musculorum deformans,

( c) Motor neuron disease,

( d) Ataxia

( e) Chorea,

( f) Hemiballisums,

( g) Aphasia &

( h) Parkinsons disease;

2) Malignant cancers;

3) Full blown acquired immuno- deficiency syndrome ( AIDS);

4) Chronic renal failure; and

5) Hematological disorders: ( a) Hemophilia & ( b) Thalassaemia.

Since angioplasty with stents is not covered in the list of specified diseases, you will not be eligible to claim any deduction from your income.