Doubts & queries are the never ending activities in our mind. Even some time when we get the answer for our query or clarification of the doubt, it creates a corresponding doubt/query. Hasn’t it happened with you?

In this article I am going to try and clarify all the probable queries that come in to our mind with regards to PPF (Public Provident Fund). In case you have any other questions which are not included here you may ask in the comment section I will update it in the article.

How to open PPF Account?

To open PPF account you need to fill up PPF Account Opening Form – A and submit at any nearest authorised Bank Branch/Post Office along with the required KYC documents. You can also apply PPF scheme online. Banks like ICICI Bank, IDBI Bank offer you to subscribe PPF scheme online.

What is the eligibility for investing in Public Provident Fund? 

Under Public Provident Fund (PPF) Scheme, 1968 a PPF account can be opened by resident Indian Individuals and Individuals on behalf of minor’s child. This means if you already have a PPF account, you can still open one more in the name of your minor child for which you are the guardian.

Remember! A PPF account can be opened either by the Mother or Father on behalf of their minor Son or Daughter; however the Mother and Father both cannot open PPF accounts on behalf of the same minor. Grand-parents cannot open a PPF account on behalf of minor grand-child; however, in case of death of both the Father and Mother, Grand-parents can open a PPF account as guardians of the grand-child.

Do you mean to say PPF can be opened in minor’s name, is that right?

Yes, an individual can open a PPF account in minor’s name for which he/she is the guardian. Note, here PPF Nomination Form – E is not required to be submitted.

In the event of the death of a guardian, in relation to a minor, should the PPF account in the name of the minor be closed and a new account opened?

In such a case, the minor is treated as subscriber. The amounts in his/her account does not become payable on the death of the guardian. Under Section 8 of the PPF Act it becomes payable only on death of the subscriber. In case of death of guardian the account of minor remains operative and a new account need not be opened. The surviving natural guardian or a guardian appointed by a competent court may continue the account of minor after producing the necessary guardianship certificate.

In the event of the death of the minor subscriber is the balance in the account payable to the guardian?

No, the guardian is not entitled to the payment of the balance. The balance in such cases is payable to the legal heirs of the minor in accordance with Section 8 of Public Provident Fund Act and para 12(6)(ii) of the Public Provident Fund Scheme.

Can HUF (Hindu Undivided Family) open PPF account?

No, HUF can not subscribe to PPF scheme. If you say the application form of PPF have the option to choose HUF, then the answer is; earlier it was available, but not now.

As per the gazette notification published on December 7, 2010 all Hindu Undivided Families (HUFs) had to close their Public Provident Fund (PPF) accounts by March 31, 2011 if they had completed 15 years.

Any accounts opened on behalf of HUF, where 15 years has already been completed by the notification date, such account had to close at the end of the year – March 31, 2011 and the entire amount standing at the credit of the subscriber was refunded after adjustments in respect of any dues from the subscriber.

This amendment in the Public Provident Fund (Amendment) Scheme 2010 was aimed at checking misuse as several people were investing in PPF to earn tax-free return as an individual as well as HUF, an attempt to earn double tax benefits, as an individual can hold only one account.

What is the minimum and maximum amount that can be invested under the PPF Scheme?

The minimum deposit amount is Rs. 500 per annum and the upper ceiling limit is Rs. 1,00,000 per annum.

What is the minimum and maximum tenure of a PPF Scheme?

Once PPF is opened, it should be kept for a minimum period of 15 years till it matures. After maturity you have the option to extend the PPF account by submitting PPF Continuation Form – H at the branch for any period in a block of 5 years after the minimum duration elapses. You can even retain the account after maturity for any period without making any further deposits. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed.

What is number of installment for deposit under PPF scheme allowed in a particular financial year? 

Though more than one deposit can be made in a month, but the number of installment deposits should not exceed 12 in a year.

What are the tax benefits from PPF investment?

The amount you invest is eligible for deduction under the Rs. 1,00,000 limit of Section 80C. On maturity, the entire amount including the interest is non-taxable.

Can I contribute to the PPF account of my parent’s and claim section 80C tax benefit? 

No, you’re not allowed to claim tax benefits on the contribution made by you in the PPF account of your mother or father.

If a cheque deposited in PPF nearing to the end of the financial years, for e.g. on March 29, 2013 but clearance happens on April 1, 2013, in which financial year deduction can be claimed?

Here the claim can be made for the FY 2013-14. Earlier it was possible to claim as per the cheque deposited date, but from March 29, 2010 the rules has been changed. now the date of realisation of cheque/draft will be deemed as the date of deposit of PPF.

What is the interest rate offered through PPF?

Currently, the interest rate offered through PPF is 8.70% per annum w.e.f. April 1, 2013  which is compounded annually. Interest is calculated on the lowest balance between the fifth day and last day of the calendar month and is credited to the account on 31st March every year. So you can derive the maximum if you make the deposits between 1st and 5th day of the month.

When can I start making partial withdrawals / loans from PPF? 

Loan facility is available from 3rd year to 6th year. From 7th year onward, you’re allowed to make partial withdrawals. Also note that once you become eligible for withdrawals, no loans are allowed. The basic difference between the two is that unlike withdrawal facility, loan carries interest and is to be repaid.

Also note, the amount of loan can’t exceed 25% of the balance at the end of 2nd immediately preceding year. For example, if you apply for loan in 4th financial year, then the maximum amount of loan you can avail is restricted to 25% of the balance at the end of 2nd financial year.

After the expiry of 5 years from the end of the financial year in which initial subscription was made, you can withdraw 50% of the balance to your credit at the end of 4th year immediately preceding the year of withdrawal or amount at the preceding year whichever is lower. However, not more than one withdrawal is permitted in one financial year.

What is the process for applying for loans and partial withdrawals? 

To avail loans you have to fill up PPF Loan Form – D and for making partial withdrawal from your PPF account, you have to fill up PPF Withdrawal Form – C . Further the application should be accompanied with the passbook.

Can the PPF account be transferred from a Bank/Post Office to another Bank/Post Office?

 Yes, as per the PPF scheme of the Government, subscribers can transfer their PPF account from one authorised bank or Post office to another authorised bank or Post office. In such a case, the PPF account will be considered as a continuing account.

Will the account number of PPF get changed when transferred from a Bank/Post Office to another Bank/Post Office happens?

Yes, the transfer entails closing the account at the existing location and opening a new one. In such case new account number will be issue to the subscriber.

Is there any charge on transferring PPF account from a Bank/Post Office to another Bank/Post Office?

No! there is no charge on transfer of PPF account from a Bank/Post Office to another Bank/Post office.

Can I terminate or closed the PPF account before maturity?

No premature withdrawal is allowed for PPF accounts. Only in the case of the death of a subscriber, their nominee /legal heir can close the account by submitting the required documents as guided by the Ministry of Finance.

Can the PPF account be attached?

Yes, the PPF account can be attached by the Income Tax and Estate Duty authorities. The PPF act only gives the account holder immunity against attachment under a decree / order of a court of law. That means PPF can’t be attached by any court.

NRIs QUERY ON PPF (PUBLIC PROVIDENT FUND)

Can an NRI (Non-Resident Indian) open a PPF account?

No, a Non-Resident Indian (NRI) is not allowed to open a PPF account. If you inadvertently opened an account after becoming an NRI, it is best to close it before it comes to the attention of the concerned authorities in India.

If an NRI opened a PPF account while he/she was a resident India and subsequently, he/she moved out of India and got the status of NRI while the scheme is yet to mature. Now can the said NRI operate it and make further investments?

Yes, in such case an NRI can continue to make the deposits in the PPF account (which was opened while he/she was resident Indian) till the maturity only. Prior to 2003, NRIs were not even allowed to make contributions into existing PPF accounts, that is, accounts opened before they became NRIs. However, in 2003, a notification (MOF (DEA) No GSR 585 (E) dated 25.7.2003) was issued permitting NRIs to continue investing in existing PPF accounts till maturity

From which account can an NRI invest in the PPF account?

An NRI can use funds in the NRE account or the NRO account to make investments in the PPF account. It is important to remember that the PPF rules require you to invest at least Rs 500 per financial year in the PPF account. If you fail to make the minimum investment in a year or years your account will be considered dormant. Subsequently, when you want to revive the account, you would need to invest Rs 500 for each year that you missed plus pay up a penalty of Rs 50.

Can an NRI extend the term of his/her PPF account after maturity?

No, once the PPF account matures, NRI can’t make further extensions. In other words, post-maturity extension is not allowed to NRIs. If you leave the account unattended post the maturity date? According to the rule book in such cases the account will be considered ‘extended without contribution’ in blocks of 5 years for an unlimited period of time. Extended without contribution means, that the NRI will not have to make the minimum yearly investment of Rs. 500.

Can PPF withdrawals be repatriated?

When NRIs were permitted to continue investing in existing PPF accounts in 2003, the permission was on non-repatriable basis, that is, NRIs could not remit proceeds of PPF withdrawal out of the country. Subsequently the RBI announced a liberalized remittance scheme in 2004 according to which NRIs could remit up to USD 1 million per financial year from the NRO account. Therefore, as of today, you can credit the withdrawal proceeds of your PPF account into the NRO account. And balance in the NRO account can be repatriated abroad up to a limit of USD 1 million per financial year. Of course, you would need to follow certain procedure for such repatriation.

Hope this is enough to get clarified about PPF scheme from all angle. If I have missed anything, do let me know.

Frequently Asked Questions (FAQ) on PPF Account (with Queries of NRIs)

218 thoughts on “Frequently Asked Questions (FAQ) on PPF Account (with Queries of NRIs)

  • April 30, 2013 at 11:52 AM
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    I have a PPF account in my name and my minor child’s name.
    Is it possible to pay 1 LK in each account per year? So total contribution will be 2 LK per year.
    Thanks,
    Sunita

    Reply
    • April 30, 2013 at 12:27 PM
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      Hi Sunita,

      Yes you can deposit Rs. 1 Lakh each (total Rs. 2 Lakhs in such case) , but remember to claim 80C you can take only the given limit i.e. Rs. 1 Lakh.

      Reply
      • July 18, 2014 at 5:26 PM
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        Hai Mr. Patra | https://www.facebook.com/velmurugan.chakkravarthy?fref=ts
        But many article says that, If I am a guardian for minor, I am allowed to invest only 1 Lakh in both account together. Really this point is confusing and already I have invested 1 Lakh in each account ( 2Years) and got the interest also. Bu when I read this article and some other sites, now I am not able to decide, what to do further. Please suggest or mail. http://www.allbankingsolutions.com/Personal-Finance/Public-Provident-Fund-PPF-scheme.htm

        Reply
        • July 18, 2014 at 6:34 PM
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          Hi Velmurugan,

          I personally visited to do an investigation and found; one branch of SBI is ready to accept full limit contribution for parents & minors each and another bank talk about rules of limits.

          This made me to conclude, that talk to bank if they agree go ahead or be at the minimum option to be at least a safer side. Until rules are clear be at a safer side.

          Reply
  • July 3, 2013 at 4:44 PM
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    dear sir,

    pl advise can i open PPF account with any designated nationalised bank for 2 years or have to maintain aleast for 5 years minimum.

    kinldy guide us

    Ayub

    Reply
    • July 3, 2013 at 5:17 PM
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      Hi Ayub,

      For PPF, the maturity period is 15years. If your aim is to keep it for 5 years, then I would suggest do not go for it. Instead you can look at 5 years tax saving FDs from any bank, but remember on maturity interest earned will be taxed as per your tax slab. Alternatively you may look at 5 years post office time deposits or NSC investments for 5 years having 8.40% and 8.50% pa rate of interest respectively, but again taxable at maturity.

      Reply
  • July 12, 2013 at 6:50 PM
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    Dear sir,
    I have a PPF account and it is mature. I am minor and my father is as guardian, can i withdraw from my PPF account without my father’s sign? (because of some dispute with my father and he is not agree) Please tell how can it is possible.
    Thank you.

    Reply
    • July 12, 2013 at 7:28 PM
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      Hi Abhay,

      This may need some legal assistance and I don’t think I should be able to comment on this.

      Reply
  • July 14, 2013 at 7:14 PM
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    Dear Sir,
    In case father making contribution for self & child’s PPF acount, whether interest earned on child’s account will be taxable.
    Pl. guide.
    Arvind

    Reply
    • July 14, 2013 at 8:00 PM
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      Hi Arvind.

      As per the provision, interest earned out of PPF investments are tax free. So don’t worry about any tax liabilities.

      Reply
  • July 21, 2013 at 7:37 PM
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    Dear Sir,
    I have opened PPF A/C in PO on 29.06.1999.
    Kindly confirm:
    1. My PPF starting year will be from 01.04 2000 and it will mature on 01.04. 2015.
    2. Can I make 16th contribution between 01.04.2015- 28.06.2015.
    2. If I extend it for further 05 years, then can I withdraw 60 percent of maturity value as on 01.04.2015
    a) in one go within 05 years
    b) Once every year in part within 05 years
    Best Regards,
    Anil

    Reply
    • September 18, 2013 at 8:56 PM
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      Hi Anil,

      Find your answer below in sequence to your query;
      1. Yes! you are right
      2. No
      3. You can withdraw upto 60% in the extended 5 years (also note, you are not allowed more than one withdrawal in a year)

      Reply
  • July 27, 2013 at 2:32 AM
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    Nice Article Soubhagya.
    I believe NRI questions/information are really helpful. Thanks.

    Reply
    • July 27, 2013 at 8:37 AM
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      Thank you Amit.

      Reply
  • August 4, 2013 at 10:46 AM
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    Dear sir i have ppf account from last two years, and every year i deposit 100000 in my ppf account. but in this years my postoffice passbook entry show only 200000 rupees they not add the interest on the passbook, so i wan to know why it’s like this,and second thing is that after 15 years how the postoffice will pay us is they give us the cheque or DD because i am nri and i have nre account and in this account i cannot deposit money in india, so how to deal with it,

    thank you

    Reply
    • September 2, 2013 at 6:40 PM
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      Hi Rahul,

      PPF contribution amount and interest credits are regularly get updated in pass book. In your case you need to talk to your bank and ask them to resolve this issue. For payment towards your PPF account you can use your NRO account. Don’t worry about the maturity proceeds as PPF withdrawal form has the option to select direct credit to bank account. PPF with SBI provides such option, others must have some alternatives.

      P.S. You need to apply for withdrawal, there is nothing that it will automatically get credited into your account.

      Reply
  • August 13, 2013 at 2:21 AM
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    Dear Soubhagya,
    I have a SBI PPF account that has reached its maturity date after 15 years. I would like my father to close the account on behalf of me while i am out of country on a business trip. Unfortunately, i have not added him to my account as nominee. Is there a way for me to send signed documents to him by mail to close the account and get the money withdrawn? What forms and other documents will be required to do so? Please let me know.
    Best Regards,
    MP

    Reply
    • August 13, 2013 at 8:31 AM
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      Hi Manish,

      I suggest you, ask your father to visit the branch where you have your PPF account and let him explain your case to the concern person at the branch. I am sure they will give you some solution for this.

      Reply
      • August 16, 2013 at 10:41 PM
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        Hi Soubhagya,
        unfortunately, that didn’t go well for my father for reasons i don’t want to disclose. i was wondering if you can give me details on legal procedure to close the account remotely, if there is one. if not, i will wait when i cab personally visit the branch in future.
        Thank you.

        Reply
  • August 16, 2013 at 1:10 PM
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    Hi,
    please let me know what happens if someone fails to deposit mimimum amount in PPF on any particular year?

    Thanks in advance for the clarification.

    Reply
    • August 17, 2013 at 8:12 PM
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      Hi Vijsy,

      As per the rule if a subscriber fails to subscribe in any year can reinstate the account with a fee of Rs. 50 alongwith arrear subscription of Rs. 500 for each year.

      Reply
  • September 14, 2013 at 9:04 PM
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    Since I have extended my PPF A/c for 5 years after completion of 15 yerars. But now at the 19th year I would like to close it. Would it be possible in the middle of the 19th year.

    Reply
    • September 14, 2013 at 9:29 PM
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      Hi Vinod,

      No! it’s not possible.

      Reply
  • September 17, 2013 at 5:28 PM
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    Hi
    Very informative article. After reading this article I feel that something has been done wrong and I need your assistance. My father has opened an PPF a/c for my kid (minor). According to your article Grandfather can’t open a PPF a/c in the name of his grandchild. I am shocked how bank has opened this a/c and still operational. Could you please guide me what to do now ?

    With Regards
    D Kumar

    Reply
    • September 22, 2013 at 8:42 PM
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      Hi Kumar,

      It’s against PPF rule. You need to close the account. On closure total deposited amount will be refunded without any interest.

      Reply
  • September 24, 2013 at 2:44 PM
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    Hi,
    Please let me know, what are all documents required to submit for tax exemption .

    Reply
    • September 24, 2013 at 3:15 PM
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      Hi Ranjan,

      If you are required to submit the proof of investment to the employer then in that case copy of PPF passbook stating current year investment with Bank/Post office seal & authorised signature would be enough. Banks having PPF facilities are also providing option to download tax certificate for the same.

      Let me know if you need further clarifications.

      Reply
  • September 27, 2013 at 11:28 AM
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    Dear Sir,
    In case father making contribution for self & child’s PPF acount, whether interest earned on child’s account will be taxable.Secondly How much the maximum amount can the father contribute to minor PPF a/c so that the intrest earned on deposit remain tax free.
    Pl. guide.
    Sanjeev Kumar

    Reply
    • September 27, 2013 at 3:12 PM
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      Hi Sanjeev,

      Interest will be tax free. And max Rs. 1Lacs can be invested as per the specified limit.

      Reply
      • September 27, 2013 at 3:31 PM
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        Hi,
        As per your reply may I conclude that Rs 2 lac(Rs 1 lac(Father PPF a/c) + Rs 1 lac Minor PPf a/c ) in a financial year one can invest under PPF and reap up the benefits with tax free intrest after 15 years.

        Regards,

        Sanjeev Kumar

        Reply
        • September 27, 2013 at 8:35 PM
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          Yes! But you need to note that under 80C only Rs.1 Lacs you can claim.

          Reply
  • October 3, 2013 at 12:18 PM
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    can i change my deposit money in PPF i:e as i am depositing 3000rs P.M can i change it to 5000rs P.M

    Reply
    • October 3, 2013 at 5:10 PM
      Permalink

      Hi Satyajit,

      Yes you can! But you need to remember that max deposit per annum should not cross Rs. 1Lac and there should be more than 12 transactions in a year.

      Reply
  • October 3, 2013 at 1:35 PM
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    Hi

    I have opened ppf account in my son’s name 3 years back. Can I withdrw partial amount from my son’s ppf account.

    Dilip

    Reply
  • October 3, 2013 at 1:36 PM
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    Hi

    I have opened ppf account in my son’s name ( he is minor – 8 years old ) 3 years back. Can I withdrw partial amount from my son’s ppf account.

    Dilip

    Reply
    • October 3, 2013 at 8:20 PM
      Permalink

      Hi Dilip,

      No! It’s not possible .

      Fyi, withdrawal from PPF account is only possible any time after the expiry of the 5th year from the date that the initial subscription is made, you become eligible to withdraw an amount of not more than 50% of the previous year’s balance or of the 4th year immediately preceding the year of withdrawal, whichever is less.

      Reply
  • October 9, 2013 at 11:52 AM
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    Hi,
    If an employed husband deposits amount in an employed wife’s ppf account, will the wife be able to claim for the amount?

    Reply
    • October 9, 2013 at 2:27 PM
      Permalink

      Hi Rao,

      Technically husband is eligible to claim 80C for the contribution made in wife’s PPF account. As I understood wife is also employed, then let her contribute her portion and claim for the same. This will avoid any repercussion later.

      Reply
  • October 16, 2013 at 9:52 AM
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    I am a NRI student. I opened a PPF account two years ago not knowing that it is illegal to do so. Since I just came to know about this rule, how can I close my account to avoid repercussions. Thanks

    Reply
    • October 16, 2013 at 10:05 AM
      Permalink

      Hi Ashwin,

      You can inform the same at the branch (It may require in person visit). In such case all principal invested so far will be refunded without any interest.

      Till then do not make any further contributions into the account.

      Reply
  • October 16, 2013 at 5:18 PM
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    Hi,
    I recently opened PPF account with icici. Even thou i had a existing savings account in icici, they made me to open 1 more savings account and linked to ppf account. Now since am feeling difficulty maintaining both the savings accounts, i want to close the new account linked to ppf account. But bank ppl are not letting me close savings acct, saying any account linked to ppf account cannot be closed. i dont want to close other acct,since i have demat transactions there.
    Please let me know if i have a option of closing a savings account linked to ppf, and link other account to it.

    Thanks

    Reply
    • October 16, 2013 at 5:31 PM
      Permalink

      Hi Mamtha,

      There is no such rule that you need to maintain a particular bank account to run PPF. What I can suggest you is, just visit any other branch of ICICI and submit an account closure letter for the account that you want to close. Don’t indicate all these issues, simply you can say “I don’t want to operate many accounts”.

      Closing the bank account giving your own reason is not illegal, but an easy way to get rid of these bankers.

      Reply
  • October 24, 2013 at 9:31 AM
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    I opened a PPF account in the year 1998 and 3 years back i become NRI and after 15 years i extended my PPF account for further 5 years without knowing the facts that i cannot extend and i have already deposited the 16th subscription. Now what i should do. Pl. help. Now i want to close my account.

    Reply
  • October 25, 2013 at 10:46 AM
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    I asked yesterday a problem regarding my PPF account which i extended for further 5 years after 15 years and i deposited 16th subscription without knowing the facts that i can not extend it after becoming NRI. What should i do now.Pl. help. It is very urgent to know the law.If u give me reply today i would be obliged. thanks.

    Reply
    • October 25, 2013 at 4:25 PM
      Permalink

      Hi Prahlad,

      As an NRI you are not allowed to extend PPF account with contribution (but allowed to be extended without further contributions). Since you have already contributed post maturity, then I suggest you to inform this to bank asap. You may get back refund of 16th contribution without interest.

      Reply
  • October 25, 2013 at 6:25 PM
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    Heartiest thanks for giving reply of my problem today itself . I shall do accordingly as per your suggestion.

    Reply
    • October 25, 2013 at 6:48 PM
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      You are most welcome Prahlad!

      Reply
  • November 6, 2013 at 9:03 PM
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    I m Karta of HUF.My sone who is NRI is coparcenerOF my HUF.He has PPF account contribution for which is being made by me out of HUF account.My son does not use the PPF deposit for his return.Plz confirm if the PPF deposit in his account can be used for saving under section 80 c in HUF

    Reply
    • November 6, 2013 at 10:29 PM
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      Hi Colonel,

      HUF making contributions in PPF account for its member account is allowed to claim deduction u/s 80C. Thus HUF can take the benefits.

      Reply
  • November 11, 2013 at 3:39 PM
    Permalink

    Hi Soubhagya,
    I opened a PPF account linked with a Saving account in ICICI 10 month ago. I want to close the Saving Account as they keep on deducting money from my saving account every month stating some useless reson.Another thing is, there is an automatic deduction from saving account to my PPF aacount which i do not want . I went to branch office, but bank people refused to closed the account and said that i can not close this account till the PPF maturity, and further said that they can not stop the automatic deduction as well.
    Please tell me how can i close this ICICI saving account without closing the linked PPF account. also, I want to know whether I can transfer the PPF account opened in ICICI to SBI ?

    Reply
  • November 12, 2013 at 6:05 PM
    Permalink

    Thanks Soubhagya. I have taken the printout of the form form SB 10(b) and will transfer my PPF account from ICIC to SBI.
    Once again Thank you for sharing the precious information.

    Reply
    • November 12, 2013 at 7:45 PM
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      You are most welcome Chandan!

      Reply
  • November 17, 2013 at 11:10 PM
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    Hi,
    I have opened my sons minor PPF account, i have been depositing 2L per annum incl. mine PPF. what i would like to know is on maturity how the maturity amount of minor PPF account wil be treated? would it be taxable on maturity as money has been deposited from my account or it is exempt on maturity likewise my personal PPF account u/s 10

    Reply
    • November 18, 2013 at 12:55 AM
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      Hi Bhavin,

      Yes! it will be tax free.

      Reply
  • November 18, 2013 at 10:50 AM
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    MY NAME IS MUSTUFA M HAJI MY PPF A/C. IS SINCE 2008 BUT AT PRESENT I HAVE NOT REQUIRED INTEREST IN MY PPF A/C. SO, PLS. SUGGEST WHAT CAN I DO . ( IF ANY FORM OR APPLICATION REQUIRED )

    THANKS

    Reply
    • November 18, 2013 at 11:03 AM
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      Hi Mustufa,

      I don’t think there is any such provision is given in the rule of PPF. You need to wait for the completion of 15 years since the account is opened if wish to exit completely.

      Reply
  • November 18, 2013 at 11:17 PM
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    Hi Soubhagya,

    Thanks for the useful information. I have one question – Can a parent deposit money in her son’s PPF account and claim section 80C deduction? Assuming her son is major and in a job.

    Regards,
    Vishwas

    Reply
    • November 19, 2013 at 10:12 AM
      Permalink

      Hi Vishwas,

      Though in the PPF rule book nowhere it is not mentioned that parents can not contribute in major son/daughter, we can not assume that one can take the benefits of 80C for the said contribution. After a person turns 18, he/she is treated as a separate individual for tax purposes. In such case the major son/daughter needs to submit a revised application form for opening the account. His/her signature on the application form will be attested by the guardian who opened the account when he/she was minor.

      Reply
  • November 20, 2013 at 9:19 AM
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    Dear sir,
    I am very happy to see your advise which helps people. Please help me on this – If One person open a PPF account in his minor son. Whit is efffect of Minor’s PPF account Interest? Is it club with his guardian or interest income will effect on minor’s account?

    Reply
    • November 20, 2013 at 1:58 PM
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      Hi Ghanshyam,

      Yes! such interest will get clubbed, but the same is not taxable.

      Reply
      • November 21, 2013 at 11:57 AM
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        sir i had a ppf account please suggest me which one is beneficial to me either i deposit Rs 1 lac on Ist April every year or to deposit in 12 multiples ?

        Reply
        • November 21, 2013 at 1:01 PM
          Permalink

          Hi Gurpreet,

          It’s better to invest lumpsum on 1st April if you wish to have max benefits of interest earnings.

          P.S. Make sure you invest before 5th of the month. Fyi, Interest is calculated on the lowest balance between the fifth day and last day of the calendar month and is credited to the account on 31st March every year.

          Reply
  • November 26, 2013 at 11:30 PM
    Permalink

    Dear Soubhagya,

    Thanks for useful portal and FAQs on PPF. My queries are:
    1. I have 3 PPF Accounts [1 mine and 2 for minor]. I would like to know if I can avail Tax benefit for minor accounts till maturity (15 yrs)?
    2. Can I deposit total 1 lac across 3 PPF accounts or individually 1 lac is allowed?
    3. What is best time to invest in PPF. Is it every month before 5th OR Before 05th of every April OR before 05 Jan every Jan

    Kindly reply

    Regards

    Naresh

    Reply
    • November 27, 2013 at 12:47 AM
      Permalink

      Hi Nareshkumar,

      1. You can take 80C benefits of Rs. 1Lacs complete from you account or jointly Rs. 1Lacs with your minor kid’s account.
      2. As per the rule you are allowed to open One PPF account in your name and another in the name of the kid (only one) for who you are guardian.
      3. If you are making lumpsum contribution, then it’s before 5th of April.

      Reply
  • November 28, 2013 at 1:49 PM
    Permalink

    Hi Soubhagya,
    Can one take the benefit of tax free intrest income on the deposit amount exceeded by Rs 1 lac.If it is so how much one can invest in PPF of his own,minor & wife in a FY to avail the same.

    Regards,
    Sanjeev

    Reply
    • November 28, 2013 at 5:45 PM
      Permalink

      Hi Sanjeev,

      Interest earned on PPF is tax free, but this does not define one can open as much as account as per his/her wish. You can open PPF account one in your name and one in the name of minor for whom you are guardian.

      Reply
      • December 5, 2013 at 5:19 PM
        Permalink

        Hi Soubhagya,

        Can one deposit more than 2 lac in a PPF a/c and earn the tax free intrest on the entire amount.i.e depsosited 3 lac so can I earn tax free intrest on the entire 3 lac in every FY.

        Regards,
        Sanjeev

        Reply
        • December 10, 2013 at 4:58 PM
          Permalink

          Hi Soubhagya,

          If you pls advice on the following matter:

          Can one deposit more than 1 lac in one PPF a/c and earn the tax free intrest on the entire amount.i.e depsosited 3 lac so can I earn tax free intrest on the entire 3 lac in every FY.

          Regards,
          Sanjeev

          Reply
          • December 10, 2013 at 5:04 PM
            Permalink

            Hi Sanjeev,

            This seems to be a debatable issue unless there is a clarity whether PPF combined limit is Rs. 1Lac (both self & minor) or Rs. 2Lacs, thus I suggest you to be a safer side and stick to it at Rs. 1Lac overall in a particular FY.

  • November 29, 2013 at 9:23 AM
    Permalink

    Hi Soubhagya,

    Thanks for reply. May I have more clarity for query 2.
    Is that mean regardless of no. of PPF Accounts, the max deposit limit is i lac if A/C holder has his/her account and minor account?

    Regards

    Naresh

    Reply
    • December 2, 2013 at 10:31 PM
      Permalink

      Hi Nareshkumar,

      It’s clear that Rs. 1Lac should be max limit that can be claimed under 80c, but its always a debatable issue whether contribution (combined) can be exceeded Rs. 1Lac or upto Rs. 1Lac. I suggest you to check with bank about the same.

      Reply
  • November 29, 2013 at 4:56 PM
    Permalink

    sir I had sb and ppf account with sbi in same branch , sir I want to check my ppf details with my internet banking by linking my both accounts. from where I can do this …… thanking u in advance

    Reply
    • December 2, 2013 at 10:37 PM
      Permalink

      Hi Gurpreet,

      Usually PPF account gets linked with your internet banking automatically to your netbanking (even if both PPF and Bank accounts are in different branches). There may be some other issues, so I suggest you to write a request letter to the bank manager for linking your PPF to netbanking. Once PPF linked, you can see all the required details.

      Reply
  • December 2, 2013 at 10:23 AM
    Permalink

    Hi, Thanks for providing very required and usefull information. I am a salaried employee and have one EPF account but contribution is very less as per my basic salary. so, i want to open an PPF account with SBI. Can i open one PPF account ? if yes then howmuch yearly contribution i can make to PPF account to get interest and Tax benefits.

    Reply
  • December 6, 2013 at 11:36 AM
    Permalink

    Dear Admin,
    if i Invest my money in Feb or March in any FY ,
    thn It should be count for Tax Benifity for that FY year or not?
    bcoz v summint our Actual investment Declartion before 25th Jan of the same FY.

    So plz helps me out ,
    what should i have to do,,,
    for invested amount in Feb and March ?

    Ex.

    FY 2011-12 Upto 25th Jan 2012 i Invested RS: 45000,
    thn in Feb Rs: 1000, & March RS: 4000,

    But in my Form 16 it’s Shows only RS: 45000,
    so what about my Last 5000.

    Intest of PPF is countable for IncomeTax Benefits ?

    Reply
    • December 7, 2013 at 12:04 AM
      Permalink

      Hi Hitesh,

      Here everything will be counted for FY2011-12. If form16 is not showing the last contribution of Rs. 5,000 then you can show the same while filing IT returns and get the tax claim.

      Yes interest of PPF is tax free.

      Reply
  • December 11, 2013 at 7:23 PM
    Permalink

    Dear sir, I opened PPF account in 1990.The account had been extended twice (2007 and 2012) for block period of 5 yrs each, with subscription. I had resident status while opening account, however self status was non resident during year 2007 and 2012, as self was working in merchant navy ,the status sometimes becomes non-resident depending upon ship trading routes. Presently my status is resident and will remain the same, as self no longer working in merchant navy. Kindly advise a)Can I continue my PPF account, as my status will remain resident for rest of my life. b)Can I further extend my PPF account, on completion of its maturity

    Reply
    • December 11, 2013 at 8:29 PM
      Permalink

      Hi Siddharth,

      It seems you have a complex situation here. Just check with the bank, and make sure if your status is continued to be resident individual then you can extend your account.

      Reply
  • December 14, 2013 at 2:36 PM
    Permalink

    i had transferred my PPF account from one branch to another branch and My PPF account no is changed , My ppf account is linked with my SB account , while i try to view my account balance it shows o balance , what about the savings i made in the past years , why it not shows my balance ??

    Reply
    • December 14, 2013 at 2:54 PM
      Permalink

      Hi Ramprasath,

      Whenever PPF account get transferred, the new bank/branch issues a new account number to the existing account and all your earlier balances get transferred to this new account. You need to request your bank (preferably written request) to link the account to your net banking so that it will get mapped and you will able to see the balances.

      Reply
  • December 15, 2013 at 12:34 AM
    Permalink

    Dear Sir,

    Can a PPF account be continued even after the death of the depositor?
    Can further amount be deposited in this account?
    If further amount is not deposited, can the balance amount be retained and interest can be earned till the account is withdrwan or is it mandatory to withdraw the account in even of a death of the depositor?Please advice.

    Regards

    Reply
    • December 15, 2013 at 9:46 AM
      Permalink

      Hi Prateek,

      On death of the account holder his nominee(s)/legal heir(s) cannot continue the account. The account has to be closed in such case. All principals and accumulated interest so far will be given to the nominee(s)/legal heir(s).

      Reply
  • December 28, 2013 at 4:12 PM
    Permalink

    Dear Soubhagya, Is it possible for me to issue a deposit a cheque for my wife’s PPF account from me and my wife’s joint NRO account and claim a IT deduction on my wife’s income tax??
    Thanks and regards

    Reply
    • December 28, 2013 at 5:39 PM
      Permalink

      Hi Vipul,

      Yes you can do so. As per the rule an individual is eligible to claim deduction from total income in respect of contributions to any PPF belonging to self, husband, wife and minor child.

      Reply
      • May 4, 2017 at 11:06 PM
        Permalink

        I have opened one PPF account in the name of minor, when his age was five years. Now he attained majority and the account was converted to normal account. Still I am depositing money in his account since he is not employed. Kindly advise me whether I will get income-tax rebate for the deposits I make in his account.

        Reply
        • May 6, 2017 at 7:48 AM
          Permalink

          Hi Narayana,

          Yes! You can continue to contribute in your son’s PPF account and avail 80C benefits upto the limit specified (no matters if he is major or minor).

          Reply
  • January 4, 2014 at 5:11 PM
    Permalink

    I send my friend to deposit Rs. 40,000/- cash in my PPF A/c in G.P.O. Lucknow. To my surprise, the post office refused to deposit money with out my PPF Pass Book! My friend met the Asstt. Post Master also but he was told that it is a rule of post office!
    I had to send the Pass Book by Blue Dart Courier courier which costed me Rs. 360/- !

    I wish to get clarification before I submit a RTI to Chief Post Master, G.P.O. Lucknow.
    Can anybody clarify quickly????

    Reply
    • January 4, 2014 at 6:51 PM
      Permalink

      Hi J K,

      I think you should not be worried about this genuine requirement by the postal authority. At least they need to verify the passbook for the latest entries though all are available in record. I don’t think there is any wrong intention prevail in the mind of the postal authority.

      Anyways I welcome feedback or views from others.

      Reply
  • January 17, 2014 at 4:29 PM
    Permalink

    Dear Sir,

    I have opened two accounts by my name (by mistake) and now I want to merge both of them and keep one PPF account. Please suggest any alternative.

    Reply
    • January 17, 2014 at 10:33 PM
      Permalink

      Hi Himanshu,

      I suggest you to report as early as possible to the bank or post office where you have opened the 2nd PPF account. They may cancel the account and you will get all the principal paid so far without any interest.

      Reply
  • January 17, 2014 at 4:37 PM
    Permalink

    I want to open a ppf account for my minor son. whether I can deposit 1 lac separately in both the accounts i.e. total 02 lac annum or cap is 1 lac irrespective of number of ppf account of mine or dependents.
    pls clarify

    Reply
    • January 17, 2014 at 10:29 PM
      Permalink

      Hi Jyoti,

      There seems no clarity on such issue in the rule book. I suggest you to check first with the bank and then go ahead for the contribution. I am getting cases where banks rejecting deposits more than 1Lacs in two account of i.e. self and minor.

      Reply
  • January 29, 2014 at 12:29 PM
    Permalink

    Hi Soubhagya,

    My wife’s ppf account (in SBI) had matured in 2012 and we did not put any money after that. I understand that now if we want to start putting money only option that we have is to close the account and open a new one. My questions are:

    – do I need to visit that particular branch for closing the account? We don’t live in that city anymore so is it possible to visit any branch of SBI or we have to visit the same branch where PPF account had been opened?
    – What all documents we need to submit for closing it?

    Thanks,
    HS

    Reply
    • January 29, 2014 at 7:36 PM
      Permalink

      Hi HS,

      If your PPF is already matured then you have the option to continue with blocks of 5 years with or without contributions.

      To close the account you need to visit to the home branch with ID proof.

      Reply
      • January 30, 2014 at 10:40 AM
        Permalink

        Hi Soubhagya,

        Thanks for the reply. But as I understand is that as it already more than a year since account is matured, now i dont have option to continue with further contributions. I think i can either continue without any more contributions or i can close the account and open a new one. Please let me know if I am right.

        Reply
        • January 30, 2014 at 11:04 AM
          Permalink

          Yes! your understanding is correct.

          Reply
  • February 2, 2014 at 4:52 AM
    Permalink

    Dear Saubhagya, Besides my own ppf account, I have opened a ppf account of my 8 year daughter (I am her guardian to open an account). I want to know that if I deposit amount in her account up to 100000/- Rs, will she get interest as per ppf rules and regulation ? ( I come to know that, ppt account of minor does not earn interest. Is it true ? Please clarfy.

    Reply
  • February 2, 2014 at 4:59 AM
    Permalink

    DeDear, Saubhagya, Besides my ppf account, I opened a ppf account of my 8 year daughter ( I am her guardian). I want to know that will she earn interest as per ppt rules and regulation ? ( I come to know that ppf account of minor does not earn interest). Pl. Clarify

    Reply
    • February 2, 2014 at 9:17 PM
      Permalink

      Hi Krunal,

      There is nothing like that. You can have PPF in minor’s name for whom you are guardian, it will earn interest. But you need to check and confirm with the bank or post office first, whether they allow you to put max limit of Rs. 1,00,000 even if you invest the same in your account.

      Reply
      • February 21, 2014 at 4:00 PM
        Permalink

        Dear Soubhagya,
        I have opened 2 PPF account in the name of my 2 daughters.
        1)Can I deposit one lac in each account. ie total 2 lacs.
        2)Further if I deposit 50000 in each of the account and my wife want to deposit some amount in that account ,is it possible?
        In whose It file will it be shown

        Reply
        • February 21, 2014 at 11:13 PM
          Permalink

          Hi Yugs,

          You can have only one account in your minor kid’s name and for other account your wife can be the guardian. Both of you can contribute Rs. 1,00,000 each to these respective accounts for which you both are guardian.

          Reply
  • March 7, 2014 at 10:52 AM
    Permalink

    I have my PPF account in my name and is active for over 15 years. Can I now make it a joint account with my wife ?

    Reply
    • March 7, 2014 at 11:19 AM
      Permalink

      Hi Prasad,

      It’s a good idea, but unfortunately PPF can not be held jointly.

      Reply
  • March 14, 2014 at 10:00 AM
    Permalink

    As per the gazette notification published on December 7, 2010
    the minor accounts needs to be closed, if completed 15 years on or before 31.03.2011. Now, I have a questions like if some one has got two minor accounts & father as a gaurdian, also has a account, that is two minor accounts (opened in Oct 2000 & Augusr 2001)+ gaurdian, father account (opened in May 1997) + wife account ( opened in Feb 2000), so all put together 4 accounts, then please reply to me on given email for following because gazette is silent about such cases.
    1) Since these accounts (2 minor accounts) does not completes 15 years, has to be continued till it reaches maturity, hence is being done. Is it okay? please clarify.
    2) The bank is accepting till date Rs. 4,00,000/-, earlier 2,80,000/- in all for four accounts. I.e. Now, Rs. 1,00,000/- on each account & earlier Rs. 70,000/- on each account. It is assumed that this is also legal, hence continued, Is it okay? please clarify.
    3) Also, an interest is being given on each year to all four account, so it is assumed that it is proper & legal, please clarify.
    Request you to authenticate your answer with proper reference, as now we know the gazette reference of your article “gazette notification published on December 7, 2010”. Such authentication is real support for the querry. This may be a challaging case to you as well, so let us give an answer with proper support, so as to have proper relief to particular individual & all such individuals. An answer on email will be highly appreciated because normally I do not visit such web sites. Thanks in advance Sanjay.

    Reply
    • March 16, 2014 at 10:08 AM
      Permalink

      Hi Sanjay,

      Answers in sequence to your queries;
      1. Yes
      2. There is a lot of confusion about this, whether 1lac each account is acceptable for guardian and minor kid. If your banks confirms it, then you can continue.
      3. You need to subscribe to our services to have our assistance in private.

      Reply
      • July 18, 2014 at 6:13 PM
        Permalink

        Mr. Patra | https://www.facebook.com/velmurugan.chakkravarthy?fref=ts
        I have studied all the reviews from the initial related to this article specifically the maximum sealing amount for self and minor account. Initially your review says that 1 lakh applicable for each account and finally you also got confused and started saying please confirm with bank.
        Now I am saying I have confirmed with many banks, some bank member says “Yes” and some member says “No”. I am sure even bank members are also in confusion stage.
        It is really a confusing question for many of the people like us. More its a challenging question for you. Please clarify

        Reply
        • July 18, 2014 at 6:26 PM
          Permalink

          Hi Velmurugan,

          What I do is, what I am confirmed about. The plight here is that the rules made by the Big Daddies and they keep changing/amending from time to time. If this is the case then I can not go back and delete what I had said earlier, so what I can do is, convey what is prevailing.

          Even I personally visited to do an investigation and found; one branch of SBI is ready to accept full limit contribution for parents & minors each and another bank talk about rules of limits.

          This made me to conclude, that talk to bank if they agree go ahead or be at the minimum option to be at least a safer side. Hope I clarified your queries.

          Reply
  • March 21, 2014 at 3:28 AM
    Permalink

    Hi,

    I opened a PPF account in India in 2009 and recently migrated to Australia on permanent residence.

    I want to close my PPF account now, can I do that.

    Thanks,
    Jyotsna

    Reply
    • March 21, 2014 at 6:39 PM
      Permalink

      Hi Jyotsna,

      May be it’s difficult to close now. You can keep it continued till its maturity with annual minimum contribution of Rs. 500. Anyways you have the option to make partial withdrawals from the 7th year onwards.

      Reply
  • March 23, 2014 at 8:13 PM
    Permalink

    Sir, I have a PPF account for self. Can I open a PPF account for my minor son with my HUF account as guardian and claim 2,00,000/- tax benefit ?? Thanks in advance

    Brajesh

    Reply
    • March 23, 2014 at 11:40 PM
      Permalink

      Hi Brajesh,

      HUF can not be a guardian to a PPF account of a minor. But HUF can take the benefit of 80C if it contributes towards PPF into the minor account.

      Reply
      • March 24, 2014 at 1:20 PM
        Permalink

        Sir, That means if i pay by cheque (from my HUF A/c) to minor’s ppf account than I can claim the same as deduction under 80C in my HUF a/c.
        Can you please give me some url for notification, as local CA says I cannot claim 80c in HUF a/c by paying to minor’s PPF a/c.

        Reply
  • April 12, 2014 at 9:32 PM
    Permalink

    Dear sir
    I am having one PPF a/c in my name and taking benefit U/s80c in my INDIVIDUAL file.I am also having one HUF file.Can I open one more PPF A/c in my name as KARTA and take benefit U/s 80c for my HUF file?Please advise with a mail to me.

    Reply
  • April 12, 2014 at 9:37 PM
    Permalink

    Dear sir
    I add to my querry that the contribution for KARTA(MY SELF)is from bank a/c of my HUF.

    Reply
    • April 13, 2014 at 12:40 PM
      Permalink

      Hi Dwarakanath,

      Fyi, HUF is not allowed to have PPF, but if it contributes towards any member’s account then it can have 80C benefits from its taxable income.

      Reply
  • April 29, 2014 at 5:10 AM
    Permalink

    Sir my ppf account is transfer 28/03/2014 to another branch but till date not received my ppf account please help me..

    Reply
    • April 29, 2014 at 8:17 PM
      Permalink

      Hi Manveer,

      I suggest you to check first with the source branch if the transfer has successfully been executed or not and then speak to the new branch. Let me know if you have already tried this.

      Reply
  • May 1, 2014 at 10:00 PM
    Permalink

    i have a PPF account in the name of my Son who was just 4 years and in accident he was dead now how i get my PPF account amount . kindly suggest the process to get the balance amount in PPF account

    Reply
    • May 1, 2014 at 11:18 PM
      Permalink

      Dear Punit,

      I am really sorry for your loss! I think you need to submit death certificate, PPF passbook at the branch. Also check with the bank/post-office what other forms or request letter needs to be furnished. As a legal heir of the minor, PPF balances will be given to you.

      Reply
      • February 18, 2015 at 12:55 PM
        Permalink

        I applied claim after death of the subscriber to PPF a/c in GPO, Delhi. After approved the claim in some fixed amount, how much times they will take. After closed the A/c in papers, but there system are not processing due to some technical problems, in between i am losing the interest.

        Reply
        • February 19, 2015 at 12:58 AM
          Permalink

          Hi Anil,

          I don’t think this will take much time. Hope this should be cleared in few days. Keep following GPO.

          Reply
  • May 19, 2014 at 1:50 PM
    Permalink

    Hi,

    I have a PPF account and have also opened ppf account for my daughter and I am the guradian.
    I wanted to know whether I can invest 1 lakh each in both the ppf accounts (mine as well as my daughters account) in a finacial year. I have heard that investment amount cannot be more than 1 lakh combined together in both the accounts.

    Please confirm.

    Reply
    • May 21, 2014 at 7:00 PM
      Permalink

      Hi Tarkeshwar,

      There is a lot of confusion as there is no clear statement mentioned in the rule book of PPF about such situation. What I suggest you is go with combined investment of Rs. 1,00,000 for both the accounts.

      Reply
  • May 20, 2014 at 12:41 PM
    Permalink

    I had opened a PPF account during July 1999. I thought it would complete 15 years during 2014 and I can either withdraw or renew the account. But the bank official says that it would mature only during March 31, 2015. In that case can I invest some more money during the May 2014, in the financial year 2014-15, provided it is not considered extension for 5 more years

    Reply
    • May 21, 2014 at 7:08 PM
      Permalink

      Hi Manjunath,

      Yes you can and the account will not extend to another 5 years since the contribution is happening before maturity date.

      Reply
  • May 20, 2014 at 1:41 PM
    Permalink

    Hi! I am planning to open a ppf account for my son, who is a minor. Can my father contribute / deposit money in my son’s ppf account. If yes, can he avail of tax deduction under 80C

    Reply
    • May 21, 2014 at 7:14 PM
      Permalink

      Hi Aley,

      Grand parents can open PPF in minor grand child’s name only in case of minor’s parents (father and mother) are not alive.

      Reply
  • May 20, 2014 at 5:09 PM
    Permalink

    Dear sir
    Kindly revert back on my mail ID mentioned here ( sri_vikas@hotmail.com)/ 9303298303

    I had opened a PPF account at SBI in the name of my minor daughter. Now at her school etc her name has been changed. I have submitted a court Stamp Paper mentioning the change in my daughter’s name. Now I am not able to get her name changed in her SBI PPF account. I have contacted many persons and submitted letters etc in bank also but not getting the help.
    Please help and suggest, what should I do in the matter.

    Reply
    • May 21, 2014 at 7:24 PM
      Permalink

      Hi Vikas,

      I think it is possible. What you need to do is get a court affidavit about the name change or publication of name change in official gazatte (you have to get it at collector’s office). But before taking all these pain, I suggest you talk to bank first, if they will accept any of these.

      Reply
  • May 22, 2014 at 9:25 PM
    Permalink

    Dear Sir,,,I have opened two PPF account in my name one from SBI & other from POST OFFICE..in the year 2006 till now continue…Sir my question is it legal or illegal ..Can I close one account if yes how can i close it..??????????

    Reply
    • May 23, 2014 at 1:38 PM
      Permalink

      Hi Krishnakalita,

      You can submit a letter at the branch where you have newer PPF stating it was opened without having knowledge that you can’t have two PPF accounts. Since you are clear know, you are requesting them to close the account. With this you should get back all the investment done so far without any interest.

      Do not forget to take acknowledgement copy of the letter to be on a safer side if there is any delay in closing the account.

      Reply
  • May 26, 2014 at 10:22 PM
    Permalink

    Hi,

    I am an NRI and my PPF/PF matures next year 2015.Can someone for eg my parents withdraw PPF/PF on my behalf if I give them an authorisation letter or is it that i have to be physically present to withdraw PPF/PF?
    Secondly, how long is the process for withdrawing and If i have to be India for that so for how many days and how long does it takes for the money to come in the account.

    Reply
    • June 23, 2014 at 9:43 PM
      Permalink

      Hi Ankush,

      As I understand, you need to visit to bank branch/post office to withdraw PPF maturity proceeds. They will issued DD in your name which you need to deposit in your account. I think, all these should not take more than 7 working days.

      Reply
  • July 11, 2014 at 1:40 PM
    Permalink

    hi ,

    suppose i started my ppf account with 12000 rs per year that means 1000 rs per month but say in between i want to increase the amount then can i increase the amount in middle or maximum i can pay only 12000 ?

    Reply
    • July 11, 2014 at 7:37 PM
      Permalink

      Hi Sandeep,

      Nothing stops you to increase or decrease the contribution at any point of time. But your minimum total contribution should not be less than Rs. 500 and more than Rs. 1,50,000 (announced in budget 2014-15) in a particular financial year. Also note, if you are making multiple contributions in a year then you won’t be allowed to do more than 12 contributions.

      Reply
      • November 1, 2014 at 11:55 AM
        Permalink

        Can we make more than one transactions in a month?

        Reply
        • November 10, 2014 at 8:51 AM
          Permalink

          Yes!

          Reply
  • July 13, 2014 at 9:15 AM
    Permalink

    Hi,
    I have a PPF account with State Bank of Mysore since the past 7 years. I also have a savings bank account in the same branch.

    During the last three years i noticed that the ppf interest is being credited to the savings bank account and not to the PPF account. Is this correct ? Shouldnt the interest be credited to the PPF account.

    Reply
    • July 13, 2014 at 2:43 PM
      Permalink

      Hi Subramanian,

      PPF interest supposed to be accumulated along with PPF balance. You need to report this to bank asap.

      Reply
  • July 21, 2014 at 2:54 PM
    Permalink

    afternoon Mr Patra, I am a NRI with PPF opened 2002 and maintaining same.
    1. My wife is a homemaker does she also legally become NRI? As she does not have a NRE account.
    2.I have two minor girls 4/6 can I open a ppf for them?

    regards,
    Jayant

    Reply
    • July 22, 2014 at 11:50 PM
      Permalink

      Hi Jayant,

      Being your spouse doesn’t mean she is an NRI. Also just opening an NRE account one doesn’t become NRI.

      An individual is resident if any of the following conditions are satisfied: This means an individual not satisfying below conditions is an NRI for that FY.
      (i) he/she stayed in India for 182 days or more during the previous year, or
      (ii) he/she stayed in India for 365 days or more during the four preceding years and stays in India for atleast 60 days 9 182 days in case of an Indian citizen or a person of Indian Origin coming on a visit to India or 182 days in case of an Indian citizen going abroad for an employment ) during the previous year.

      Stay in India for the above criteria may be continuous or intermittent.

      Answer to your second question is yes you can, but you need to know PPF is allowed for resident individuals. Non-Residents are not allowed to open PPF.

      Reply
  • August 11, 2014 at 12:22 PM
    Permalink

    If I have to transfer the funds in sbi ppf account by mistake So how can find him back in my saving account

    Reply
    • August 11, 2014 at 12:59 PM
      Permalink

      Hi Subhash,

      I don’t think there is any way. Suggest you to talk to bank asap for the solution.

      Reply
  • August 20, 2014 at 3:35 PM
    Permalink

    Hi
    Very useful FAQs. Have PPF with SBI but do not have any other relationship with SBI. Is it possible to transfer through online banking from ICICI or other bank (where I have savings accounts) to PPF account with SBI?
    Thanks

    Reply
    • August 21, 2014 at 8:09 PM
      Permalink

      Hi Srinivas,

      You can add PPF account as beneficiary under NEFT of ICICI Bank and make the payments. It will work. One of the readers could do it successfully through HDFC Bank NEFT system. Suggest you to make a minimum transfer and check the status. Do not forget to come back and share your experience.

      Reply
  • August 24, 2014 at 7:55 PM
    Permalink

    Hi

    I am a Mariner (NRE with Indian Passport)) & my wife is a home maker & I have a son.
    My wife has an PPF account and I want to start a PPF account in my son’s name.
    My question is, Am I eligeble to do that? despite of contributing towards my wife’s PPF.

    Reply
    • August 25, 2014 at 10:01 PM
      Permalink

      Hi Sudhir,

      If your son’s status is resident India then you can open PPF in his name. But I suggest you, let your spouse (if she is also resident India) be the guardian for the minor’s PPF. There are lot of confusion around. Still some fight is there whether NRI can be the guardian for minor in PPF or not.

      Reply
      • August 26, 2014 at 4:35 PM
        Permalink

        Hi Soubhagya
        Thanks a lot for such a prompt response.
        I read else where if a person contributes more than max limit than he may not entiltled to get tax break on any surplus investment he makes in various PPF accounts held by (inperson and guradian) . if that is tru than wouldn’t it be more prudent to open my son’s account and I remain as guardian. I know you already have said that but this is a reason why I was looking for being a guardian to my son’s PPF account. Yes both my wife and son are residents. I hope, I am bothering you too much, but you will appreaciate that I actually liked your blog and found way too useful then any other’s & thats why you opinion matters to me.
        Cheers
        Sudhir

        Reply
        • August 26, 2014 at 4:43 PM
          Permalink

          Hi Soubhagya
          I was too slow to type my thoughts probably that’s why made so many blunders in last message.
          So please excuse me for those typos, but if you didn’t get what I meant to say than please let me know.
          Cheers
          Sudhir

          Reply
  • August 26, 2014 at 5:54 PM
    Permalink

    Can ‘HUF’ contributes in the individual’s PPF accounts of the all members equally . whether no need in tax relaxation at all.

    Reply
    • September 7, 2014 at 6:50 PM
      Permalink

      Hi Shashank,

      Yes! HUF can contribute to the PPF account of its members and claim tax deduction.

      Reply
  • August 30, 2014 at 8:16 PM
    Permalink

    Hi, Soubhagya,
    I have a query. My son’s PPF a/c was opened in 1995 and was extended in 2011 for 5 years.
    Therafter he has become an NRI. Can he continue contribution for the extended term?

    Thanks in advance
    A R Joshi

    Reply
    • September 7, 2014 at 6:30 PM
      Permalink

      Hi Joshi,

      NRI are not allowed to continue PPF after maturity. If not withdrawn on maturity then it will automatically extended, but contributions are not allowed.

      Reply
  • September 17, 2014 at 2:29 PM
    Permalink

    AS PER THE RECENT BUDGET , PLEASE LET US KNOW IF I COULD PAY 150000 IN MY INDIVIDUAL ACCOUNT AND
    RS.150000 IN MY MINOR CHILD ACCOUNT , TOTALLY RS.3.00 LAKHS. PLEASE TELL US IF THE SBI BANK ACCEPTS THE CONTRIBUTION MADE.

    Reply
    • September 18, 2014 at 8:01 PM
      Permalink

      Hi Anil,

      The max contribution limit has been increased to Rs. 1.5Lacs from Rs. 1Lac, but nothing has specifically been proposed what you have mentioned.

      Reply
  • September 30, 2014 at 10:19 PM
    Permalink

    Hi,

    I have PPF account. Can my wife can also open PPF account. Currently for one person the maximum limit is 1.5 lac per anum. So Can I invest 1.5 lac and another 1.5 lac can be invested by Wife in a year?

    Many Thanks

    Reply
    • October 1, 2014 at 9:13 PM
      Permalink

      Hi Pankaj,

      Yes! Your wife can also have PPF. Even she is very much allowed to invest upto Rs. 1.5Lacs.

      Reply
  • October 10, 2014 at 12:35 PM
    Permalink

    My PPF A/C started in SBI Asian games,SIRI FORT branch New delhi.I ted in SBI,

    Reply
  • October 10, 2014 at 12:37 PM
    Permalink

    My PPF A/C was opened in SBI ,Asian

    Reply
  • October 11, 2014 at 12:42 AM
    Permalink

    Hi Soubhagya,

    Great Article. I have one query.
    Both me and my husband had exhaust the 1.5L limit for our individual PPF account for FY 2014-2015. However, recently I came to know that its a great and safe investment mechanism to save some money for your minor kid also.
    Now I would like to open a PPF account for our kid, but am little confused as we both have exhaust our yealy limit.
    Could you please let me know if it is possible to open the PPF account for my kid now? I am fine with min deposit for the current FY.
    Thanks
    Kalyani

    Reply
    • October 12, 2014 at 1:00 PM
      Permalink

      Hi Kalyani,

      Yes! Either of the parents can open PPF in minor’s name

      Reply
  • October 25, 2014 at 2:58 PM
    Permalink

    Hi,
    I have added a surname to my name and then I also made the changes in passport, aadhaar card and PAN card. Thanks to the online facility available for these kind of work. Now I wanted to change the same in PPF account. Could you please kindly tell the procedure for the same.

    Reply
    • October 28, 2014 at 9:05 PM
      Permalink

      Hi Manav,

      You should submit an affidavit along with supporting document with regards to change in name at the branch where you have PPF account.

      Reply
  • November 3, 2014 at 5:34 PM
    Permalink

    I HAVE ONE PPF ACCOUNT IN MY INDIVIDUAL NAME AND ONE PPF ACCOUNT
    IN MY MINOR CHILDS NAME , CAN I INVEST RS.1.50 LAKHS IN MY INDIVIDUAL ACCOUNT AND RS.1.50 LAKHS IN MY MINOR CHILD ACCOUNT . PLEASE REPLY.

    Reply
    • November 10, 2014 at 8:52 AM
      Permalink

      Hi Anil,

      Rules are still unclear with regards to such max contributions. I suggest you to check with the bank.

      Reply
  • November 14, 2014 at 2:09 PM
    Permalink

    SIR,
    HELLO,
    MY MINOR CHILD WILL BE MAJOR IN DEC 14, AND I WILL BE DEPOSIT PPF AMOUNT YEARLY IN BOTH MY AND MY MINOR SON A/C.
    CAN I CLAIM BOTH IN MY ITR RETURN OF A.Y.2015-16

    PLS ADVISE AND MAIL ME.
    LOKESH GARG

    Reply
    • November 14, 2014 at 10:49 PM
      Permalink

      Hi Lokesh,

      There might be an argument arise that your son is a major for during FY 2014-15, thus try avoiding such inconveniences and put money in your account satisfying the required limit at least to save tax.

      Reply
  • November 14, 2014 at 4:19 PM
    Permalink

    i didnt use my indian bank a/c for 1 and half years. is there any possible to continue my a/c further…

    Reply
    • November 14, 2014 at 10:46 PM
      Permalink

      Hi John,

      You should talk to bank and find out what is the current status of the account. They will be in a better position to suggest you in this regard.

      Reply
  • November 17, 2014 at 7:10 PM
    Permalink

    I opened an account in the name of my minor son, but now he is 18 years old and his name has also been changed in the class 10th marksheet what should I do to get the hassle free amount at the time of maturity…

    Reply
    • November 19, 2014 at 11:07 PM
      Permalink

      Hi Shinjinee,

      You should submit ID proof (PAN, Addhaar, DL etc) of your son along with provide affidavit of name change. Also check with bank officer in case bank needs any additional proofs.

      Reply
  • December 9, 2014 at 8:59 PM
    Permalink

    I have opened a PPF account and i failed to deposit after 3 years due to some financial crisis and if i am willing to continue after 2 years? what happens to that account? will there be any issues because of account being dormant?

    Reply
    • December 13, 2014 at 9:14 AM
      Permalink

      Hi Sathish,

      You need to speak to the officer at the branch of the post office/bank regarding activating the account (in case dormant). Anyways yearly minimum contribution is Rs. 500 olny, then why do you want to hold it for two years?

      Reply
  • January 11, 2015 at 1:32 PM
    Permalink

    Hey ,i wan to know right now ROI is 8.70% it will remain same during 15 year or it may change during or between this coming 15 years .If i can open PPF account right now than this ROI will be same till 15 years?

    Reply
    • January 23, 2015 at 11:48 PM
      Permalink

      Hi Asmita,

      PPF interest rate is not same for all the years. It is subject to change in every financial year.

      Reply
  • January 11, 2015 at 8:12 PM
    Permalink

    what is the age limit for opening PPP account. Can I open PPF account by depositing Rs 1000 initialy and thereafter can I deposit any amount not exceeding Rs. 1,5 lakhs in any number of instalments not exceeding 12 on different dates in that particular financial year. Can I deposit different amounts in future financial years.

    Reply
    • January 23, 2015 at 11:59 PM
      Permalink

      Hi Hindurao,

      There is no max age limit for opening PPF. You can open PPF account with minimum Rs. 100, but yearly mini and max contributions should be Rs. 500 and Rs. 1,50,000 respectively. The max installment in a year is allowed only 12, but total contribution should not cross Rs. 1,50,000. And Yes, you can deposit different amount in future, but stick to these min and max limit conditions.

      Reply
  • January 11, 2015 at 8:21 PM
    Permalink

    Sir,
    I need clarification and guidance about PPF HUF account .
    Karta of ppf huf account died in the year 2014. He made nomination in his wife’s name while opening the account in the year2002. Now the nominee and family members (her sons and daughters)want the account to be continued in the name of her eldest son who is the karta of HUF now. She produced a letter given by charted accountant that the eldest son(name mentioned in the letter) is succeeded as karta of the family .
    In this case the account to be continued by whom? From the nominee or her eldest son ?

    Reply
    • January 28, 2015 at 11:31 PM
      Permalink

      Hi Jayanthi,

      After death of Karta of PPF HUF, the account will be continued by the new Karta appointed by the HUF. Thus in the case shared, it will be run by the eldest son who is a new Karta now.

      Reply
  • February 2, 2015 at 8:18 AM
    Permalink

    Dear Sir,
    How can I close permanently the PPF account while I am in extension period of this?

    Reply
    • February 2, 2015 at 1:54 PM
      Permalink

      Hi Paresh,

      Yo can close it once the extension period is over!

      Reply
      • February 8, 2015 at 1:51 PM
        Permalink

        Many thanks for information.

        If I want to extend this account after the first 5 years block, for more 5 years, how much amount I can withdraw from it?

        Reply
        • April 22, 2015 at 9:56 PM
          Permalink

          Hi Paresh,

          You can withdraw 60% of available balance before the extension period. This withdrawal can be done with 5 years of the extended period.

          Reply
  • March 21, 2015 at 6:17 PM
    Permalink

    Dear sir,

    What is the best time to invest in ppf for year 2015-16.
    Eg:- If i invest between 1 to 5 april does it calculate in year 2014-15 or i invest after 5 april for tax benifit of year 2015-16.

    If possible please reply on mail id before 30th march

    thanks & regards
    sanjay shingadia

    Reply
    • April 4, 2015 at 11:20 PM
      Permalink

      Hi Sanjay,

      Sorry for late reply! Better invest before 5th of April 2015. Any investment after April 1, 2015 but before March 31, 2016 will be considered for FY 2015-16.

      Reply
  • March 24, 2015 at 7:18 PM
    Permalink

    my initial contribution to ppf a/c was on sep 1999 i want to extend this a/c witch is last date to submit form h for extention

    Reply
    • April 4, 2015 at 11:11 PM
      Permalink

      Hi Singhal,

      Sorry for late reply! Your first year will be considered starting from April 1, 2000, so 15 year maturity should be March 31, 2015. You should submit the form as soon as possible.

      Reply
  • March 28, 2015 at 3:20 PM
    Permalink

    I got interest on PPF acount credited in my account on 31 March 2013(from my Account statement), So i will declare it in ITR of Assessment year 2013-2014, given the fact that Previous year in which this interest was credited is 2012-2013(1 April 2012-31March 2013) ?

    Reply
    • April 4, 2015 at 10:59 PM
      Permalink

      Hi Bineet,

      Sorry for late reply! Yes your understanding about the interest period is absolutely right.

      Reply
  • April 1, 2015 at 8:48 PM
    Permalink

    Please clarify

    1. Which type of deposit is most beneficial in PPF?
    a) Monthly b) Yearly

    2. What mode of deposit is most beneficial in PPF?
    a) Fixed b) Variable

    3. If Yearly – Which month is better to get a best return?
    a) April 1 – 5 b) March 1 – 5

    4. If monthly – which date is better to get a best return?
    a) 1-5 b) 5-10 c) 21-30

    5. If my deposit amount is 96000 Per Annual, what would be my total return value?

    6. When, i can decide about the extension of my PPF account?
    a) At time open PPF b) after 5 Years c) after 10 Years

    7. How to disclose PPF account after 15 years with 100% maturity?

    Reply
    • April 4, 2015 at 10:13 PM
      Permalink

      Hi Karthik,

      Answers in sequence to your questions;
      1. Lumps sum during beginning of financial year to get higher potential interest.
      2. Difficult to answer.
      3. April 1-5
      4. 1-5
      5. If invested at beginning of FY then 8.7% i.e. 8,352 for first year
      6. Before it completes 15 years i.e. during maturity.
      7. With regular IT return filing you can declare interest credits(though no tax). Keep doing this till maturity.

      Reply
  • April 6, 2015 at 3:48 PM
    Permalink

    Can a minor withdraw money from sbi ppf account before the of 18

    Reply
  • April 11, 2015 at 3:03 PM
    Permalink

    Hi

    I have made a partial withdrawal in March 2015. Can i make another withdrawal this month since the financial year has changed?

    Rhanks
    Akhilesh

    Reply
    • April 23, 2015 at 12:41 AM
      Permalink

      Hi Akhilesh,

      Yes you can do so. Hope you know that withdrawals are allowed once in a financial year.

      Reply
  • April 15, 2015 at 3:56 PM
    Permalink

    Hi Soubhagya Kumar Patra,

    Thank you so much for your relevant answers

    🙂

    Reply
    • April 23, 2015 at 12:50 AM
      Permalink

      You are most welcome Karthik!

      Reply
  • April 25, 2015 at 6:56 PM
    Permalink

    Hii…
    My qstn is : Supposingly I hav withdrawn money frm a SBI ATM frm VAPI Railway Station and I dnt want to show that entry in my Passbook…
    Thank can it be possible??

    Reply
  • April 25, 2015 at 7:07 PM
    Permalink

    Hii…
    My qstn is : Supposingly I hav withdrawn money frm a SBI ATM frm VAPI Railway Station and I dnt want to show that entry in my Passbook…
    Thank can it be possible??

    Reply
    • April 27, 2015 at 9:20 PM
      Permalink

      Hi Jash,

      Is your query related to PPF account? But for your information, all transactions are recorded in bank’s database and the same has to be reflected in your passbook.

      Reply
  • April 25, 2015 at 11:50 PM
    Permalink

    Hi.. i have read ur answers to the user’s queries.
    It was really informative

    Wanted to ask some questions…
    I have opened ppf account last week ( april 21, 2015 ) with 1000 /-. I know that interest will not be paid for this amt. I’m planning to invest some amount between 1st to 5th every month.
    Now what is my doubt is.,
    1. If i become NRI after 6 or 7 years, can i still invest up to 1 lakh per annum or 1.5 lakh per annum ??

    2. If i am eligible to invest after becoming NRI, i will get interest to my principle amount which i have invested right ?

    3. Am i not eligible to extend after my maturity if i’m an NRI ?

    4. If i’m not eligible to extend the contribution, can i open another PPF account as an NRI ? Or is there any process to open next PPF account for NRI’s ?

    Really appreciate if i get answers to my questions
    Tons of Thanks in advance

    Reply
    • April 27, 2015 at 9:16 PM
      Permalink

      Hi Lekha,

      Find answers in sequence to your queries;
      1. No such restrictions. As of now max limit is Rs. 1,50,00 for the FY and same is applicable to NRIs who have PPF account before their residential status changed.
      2. Yes, you are right. But in cumulative your interest will also earn interest for the subsequent financial year(s)
      3. Yes, Non-residents are not allowed to extend PPF.
      4. No, you can not. Until your residential status is changed to Resident, you can not open new PPF account.

      Reply
  • April 28, 2015 at 6:47 PM
    Permalink

    If I want to take out 1 of d entry which should be not seen in my passbook.. Then can we do dat ?? Wats d procedure??
    I simply just dnt want to show 1 entry in mah Passbook dats d qstn .. Can it be done by bank?

    Reply
  • July 14, 2015 at 11:04 PM
    Permalink

    My wife has a joint savings a/c in united bank of india with me. First name is of my wife and second name is of me. My question is, is she can open a ppf a/c in that bank by her name on behalf of that a/c? If anybody knows about this, kindly inform me please on my email a/c. Thank you.

    Reply
    • July 26, 2015 at 12:31 PM
      Permalink

      Hi B Jain,

      There is no restrictions. If bank has no problem, then you very well PPF can be opened.

      Reply
  • August 17, 2015 at 4:50 PM
    Permalink

    Hi Sir.
    I have opened an PPF Account in SBI. In my PAN, my surname was not present at that time, so my account opened with only First name. I have my new PAN Card now with full name, is it possible now to include the last name as well in the existing PPF Account?
    Thanks.

    Reply
    • August 18, 2015 at 9:49 PM
      Permalink

      Hi Sumeet,

      Yes, you can do so. You need to visit to bank and give a written application along with proof of identity with updated name i.e. PAN.

      If you have bank account in SBI then get the name updated there also (if not already). It will help you as a support to update PPF account name.

      Reply
  • August 18, 2015 at 9:56 AM
    Permalink

    I am in USA more than a year and my wife is with me . She is travelling to india in a short visit. 1 month. Can she open a NRI account. Is it legally ?

    Reply
    • August 18, 2015 at 9:44 PM
      Permalink

      Hi Mayadhar,

      If she is going to be an NRI (or already an NRI) then there is no harm in getting the account opened during her visit to India.

      Reply
  • January 23, 2017 at 11:27 PM
    Permalink

    can i pay money in my SBI PPF acount through my SBI internate banking on same day after PPF acount opening?
    How many time required to activate PPF acounte after its opening?

    Reply
    • February 12, 2017 at 11:21 AM
      Permalink

      Hi Mangesh,

      Yes! You can do so, if you have the PPF account number allotted. Btw account should be activated within a day itself.

      Reply
  • February 10, 2017 at 12:25 AM
    Permalink

    If I make a deposit of 1 lakh in Jan..Can I again deposit one more lakh in April of same year…Since March is the end of financial year?

    Reply
    • February 11, 2017 at 11:19 AM
      Permalink

      Hi Manjunath,

      Yes! You can do so, because April is going to be new financial year for investment in PPF account.

      Reply
  • February 15, 2017 at 3:36 PM
    Permalink

    Hi.. i have read ur answers to the user’s queries.
    It was really informative.
    I want one more information .
    I have opened my PPF a/c in the year of 1987.
    I have extended PPF three times , still I want to continue for more years.
    Meanwhile I retired and now staying in my own town, which is quite far from my duty place.
    I want to transfer my PPF a/c from bank to bank.
    1) Is it possible ?
    2) Is it possible to transfer a/c from ‘X’ bank to ‘Y’ bank ?
    Pl clarify me.
    Thanks.

    Reply
    • February 15, 2017 at 4:51 PM
      Permalink

      Hi Shantanu,

      Yes, is the answer to both of your queries.

      Reply

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