Yes, this is true. Considering that your child is a minor, you as the parent / guardian are not entitled to dual exemption of up to Rs. 2 lakhs, the exemption limit remains at Rs. 1 lakh for a minor child. However, if you open an account in your spouse’s name, you are eligible for a secondary deduction on the amount invested in her name. As the PPF interest earned is tax free, there is no concern of clubbing of income as there is no tax to be paid on the PPF interest.
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The above answer is correct and you seem to be misinformed about Public Provident Funds. Please go through http://www.financesguru.com/the-best-tax-saving-instrument-in-india-public-provident-fund/
Hi,
I understand that I will get tax benefit on 1 lakh only. But can I invest total 2 lakh, 1 lakh in each PPF account?
Yes you can invest.