Wednesday, December 26, 2012

Every Question you will ever have about PPF - Public Provident Fund - Answered


Public Provident Fund or PPF is one of the most preferred means of Investment as well as Tax Saving in India. As we are entering into the New Year, people will be wondering where to invest their hard earned money to reduce their tax liabilities. As PPF is one of the excellent choices, we have already covered it in detail in some of the earlier articles in our blog. The purpose of this article is to try to answer all possible questions that may arise in your mind about PPF. If you can’t find an answer to any query you may have about PPF, please feel free to leave a comment and I will be more than happy to clarify it :-)

Before we Begin: Old articles in our blog that cover PPF

1. Public Provident Fund (PPF) De-Mystified
2. Best Tax Saving Options Available for Investment
3. Saving Income Tax through Investments
4. Life Stage based Tax Saving Portfolio

The Questions and their Answers!!!

Q1. Who can open a Public Provident Fund PPF account?

Any Indian who earns an Income in India can open a PPF account, either on his/her own behalf or on behalf of a minor. Even NRI's who wish to avail tax rebate on their income in India are also eligible to open a PPF account. Payments, however, will have to be made from their NRO account on a non-repatriable basis.

Q2. Can an NRI who does not earn an Income in India Open a new PPF Account?

No. They cannot. However, if the NRI had opened a PPF Account before he/she left the country, they can keep the account open and even make contributions towards it.

Q3. Can a Hindu Undivided Family (HUF) open a PPF account?

No. HUFs are no longer allowed to open any PPF account.

Q4. How many PPF Accounts can one Individual have?

Only One.

You can have only one PPF account in your name. If, at any point, it is detected that you have two accounts, the second account you have opened will be closed, and you will be refunded only the principal amount, not the interest. Plus, don’t forget the penalties and fines for having kept two accounts.

Q5. Can I open a PPF Account for a minor?

Yes, but there are a few limitations.

* The person opening the account must be the legal guardian for the Minor
* Either the father or the mother can open a PPF account on behalf of their minor child, but both cannot open an account for the same child

Q6. Where can you open an Public Provident Fund - PPF account?

You can open a PPF Account at any of the following:

a. Any branch of State Bank of India
b. Any branch of SBI's associated banks like State Bank of Mysore, Hyderabad etc.
c. Your nearest Post Office

These days, some more Nationalized and even Private Banks have started offering PPF Accounts to their customers. Remember, banks don’t get any money or fees to handle these PPF accounts and more importantly the money has to be credited to RBI the very same day. So, they may be slow or reluctant to help you with the PPF account. So, some people feel that the Post Office is much more accessible in terms of PPF Account opening as well as for subsequent transactions.

Note: No matter where you open an account, you will be given a passbook in which all subscriptions, interest accrued, withdrawals, loans and so on, are recorded. Remember to collect it and keep it safely.

Q7. How long can/must you keep the Public Provident Fund account active?

The normal term of a PPF account is 15 years. However, the effective period works out to 16 years because you are allowed to make your last contribution in the 16th financial year. Even if you make a contribution on the last day, you still get the tax rebate, although you won’t earn any interest on the amount.

Q8. Can I continue the PPF account after the 15 year lock-in period?

The PPF account is valid for 15 years. The entire balance can be withdrawn on maturity, that is, after 15 years from the close of the financial year in which you opened the account. So, if you opened an account now in FY 2012-13, your PPF matures on April 1, 2028. (15 years from March 31st 2013 which is the last day of the current financial year 2012-13)

You have an option of extending your accounts after the 15 year tenure with or without further subscription, for any period in a block of 5 years. The balance in the account will continue to earn interest at the prevailing rates till the account is closed. In case the account is extended without contribution, any amount can be withdrawn without restrictions. However, only one withdrawal is allowed per year. If you continue the account after 15 years, with continued deposit, withdrawal up to 60 per cent of the balance at the beginning of each extended period (block of five years) is permitted.

Q9. What are the Minimum and Maximum deposit limits?

A Minimum deposit of Rs. 500 must be made during every financial year. The Maximum amount you can deposit every year as of now is Rs. 1 lakh. (It was 70,000 till last year - 2011)

Q10. How many deposits can I make in one year?

Deposits could be in either one lump sum, or in regular installments. You could vary the amount and the number of installments, as per your convenience, but you cannot exceed 12 installments in one financial year.

Note: The amount that is being deposited should be in multiples of Rs. 10/- You cannot deposit Rs. 501/-

Q11. What happens if I fail to make the Rs. 500 minimum payment?

If you Fail to deposit the minimum amount (Rs. 500/-) your account would be discontinued.

Q12. When my PPF Account is discontinued, will it continue to accrue Interest?

Yes, the amount in your account will continue to earn/accrue interest.

Q13. Can I revive my discontinued PPF Account?

Yes, you can revive your PPF account by paying a fee of Rs. 50/- for each year that you defaulted, along with subscription arrears of Rs. 500/- for each such year.

Q14. Can I open a new PPF account after my old account got discontinued?

No. You cannot. You will not be debarred from opening a new one if your old account got discontinued.

Q15. Can I make withdrawals from my PPF account?

It depends on the number of years the PPF Account has been active.

* The entire credit balance in your PPF account is yours to withdraw when it matures at the end of the 15 year period.
* The first withdrawal can be made from the Seventh year
* You can make only one withdrawal ever year
* You can withdraw up to 50 per cent of the balance at the end of the fourth year or the year immediately preceding the withdrawal (whichever is lower)

Q16. If I open a PPF account for my Minor son and deposit 1 lakh in it for this year and then deposit 1 lakh in my PPF account, can I get 2 lakhs tax benefits under Sec 80C?

No. The upper limit under Section 80C of the Indian Tax Laws is 1 lakh and it includes contributions made towards all saving instruments that fall under this category against both your as well as your dependents names. The upper limit is on a per individual basis and not on a per account basis which means if I have a PPF Acc and have one on my Sons name, A combined of 1 lakh only can be deposited both accounts put together.

Q17. Can you get loans form your PPF account?

Yes. You can get loans from your PPF Account. But, there are a few restrictions:

* There can only be one loan at any point in time.
* The existing loan has to be repaid in full before you can apply for a new loan
* Loans can be taken after completing 3 full years of keeping the PPF account active
* Loan amount is limited to 25% of the corpus that was present in the PPF Account at the end of two years preceding to the current date (when the Loan is being applied).
* Interest is charged at the rate of 1% if prepaid within 36 months and at 6% on the outstanding loan after 36 months.
* The repayment may be made either in lump-sum or in Installments.

Q18. Is the amount that I receive at maturity taxable?

No. The amount you receive at the end of the 15 year period is fully Tax Free. Even the Interest you earned in your PPF Account is not taxable.

Q19. Who decides the Rate of Interest earned in the PPF Account?

The Government of India decides the Rate of Interest.

Q20. How is the Interest calculated on my PPF account balance?

The Interest is calculated on a monthly basis based on the lowest balance in an account between the close of the 5th day and the end of the month. So, if you had Rs. 10,000/- on the 4th of the month and deposited another 10,000/- on the 6th, for Interest calculation purposes, only Rs. 10,000/- will be considered for the current month. Only the next month will earn an interest on Rs. 20,000/-

Q21. When will the Interest get credited into my PPF Account?

The Interest will get credited at the end of each financial year.

Q22. From which account can an NRI invest into his/her PPF account?

An NRI can use funds in the NRE account or the NRO account to make investments in the PPF account.

Q23. Does the minimum investment of Rs. 500/- every year apply to NRIS's?

Yes, it applies to all individuals who have opened a PPF account irrespective of their residential status.

Q24. What happens on maturity of PPF Account of NRI?

If you are an NRI at the time the deposit matures, you would need to withdraw the balance.

Q25. Can an Individual who is an NRI at the time of maturity apply for extension for another 5 years?

No. An NRI is not eligible for extension on the PPF account.

Q26. What happens if an NRI leaves the account unattended past the maturity date?

Though this is not a recommended option, in such cases the account will be considered "extended without contribution" and can be closed by the NRI at any point he/she visits the country.

Q27. Do I have to pay Wealth Tax on the maturity proceeds of my PPF account?

No. The PPF Maturity proceeds as well as the amount accumulated in your PPF account are fully exempt from Wealth Tax irrespective of how much money you have in your PPF Account.

Q28. If I am involved in any legal dispute, can any court attach my PPF account to settle the same?

No. The balance in a PPF account cannot be attached under an order or decree of a court. This means that, if you're involved in a legal dispute, a court cannot attach or question the money in your PPF account like it can with your other personal property.

Q29. What was the best Interest rate ever offered by PPF?

During the initial days when the government was trying to motivate people to open PPF accounts they offered 12% interest per year.

Q30. Do you have historical PPF rate information?

Yes, I do. They are as follows:

From 01.04.1986 To 14.01.2000 - 12%
From 15.01.2000 To 28.02.2001 - 11%
From 01.03.2001 To 28.02.2002 - 9.5%
From 01.03.2002 To 28.03.2003 - 9%
From 01.03.2003 onwards - 8%

Q31. Can I open a PPF Account as a joint holder with my Spouse or anyone else?

No. A PPF account can be opened under only one name.

Q32. Can I nominate my spouse or anyone else to receive the PPF account proceeds?

Yes, you can. You can nominate as many people as you want. You need to register their name and bank account details while nominating them for your account.

Q33. Can the Nominee(s) continue to keep the PPF account open after the death of the account holder?

Yes, they can keep it open, but they cannot make any further contributions. The amount in the PPF account will continue to earn Interest until it is closed.

Q34. Will the PPF account proceeds be paid out even before 15 years in case of the death of the account holder?

Yes, it will be paid out even before completion of the mandatory 15 years’ time period in case of the death of the account holder

Q35. If the PPF account holder does not nominate anyone, who gets the money?

The Legal Heir of the PPF Account holder will get the money. Usually the Spouse or Kids of the account holder will be considered Legal Heirs in the absence of a legal Will document. There was an article a few months back about the importance of a legal will. Click Here to read it

Q36. How will the payment be made to the nominees after the death of the account holder?

A single cheque is issued in favor of all the nominees. So, it would be a good idea for the nominees to open a joint bank account. However, it would also be a good idea to keep the number of nominees to one or two and not too many.

Q37. I recently moved from one city to another. Can I get my PPF Account transferred to the new city?

Yes, you can. Locate a post office or a bank branch that services PPF accounts and submit a written request to get the account transferred along with details of your existing account that was opened in your old city.

Q38. Can I make withdrawals or apply for loans without the PPF Passbook? I know my PPF account number.

No. Without the PPF Passbook you cannot apply for partial withdrawals or apply for a loan.

Q39. What can I do if my passbook is lost or damaged?

If Lost - Visit the branch where you opened your PPF account with identity proof and submit a request for a replacement passbook. They will ask you for proof that you held a PPF Account, so, take some old statement or at least your PPF Account number before going.

If the book is damaged, you can take it to the branch where you opened and request a replacement book.

Q40. If my PPF Account is currently discontinued due to non-payment of the minimum amount and I opened a new PPF Account, can I close the old one and get the money?

No. The old account that was discontinued cannot be closed until it completes the 15 years lock-in period. I would rather reactivate my old account by paying the meager sum of Rs. 50/- rather than open a new account and have the hassle of maintaining two PPF accounts.

Q41. Can I Deposit more than 1 lakh in my PPF Account?
No you cannot. The upper limit is 1 lakh only. Even if you have multiple accounts (one in your name and one in your childs name) the 1 lakh limit includes both these accounts

Q42. I have been depositing more than 1 lakh each year. Is that a problem?

Yes. Though nobody is actually going to stop you from depositing more than 1 lakhs (Banks usually get a commission based on how much deposits they collect, so they wont stop you) the fact is you can only deposit a max. of 1 lakh. So, in future if you are identified as someone who is depositing more an 1 lakh, you may be asked to pay fines or penalties. So, I would recommend the better safe than sorry policy here.

Q43: I have a HUF PPF Account which is maturing soon. Can I renew it for another 5 year period?

No. The policies governing HUF PPF Accounts were amended in 2011 whereby such accounts will automatically mature at the end of 15 years and Cannot be Renewed.

Q44. When a normal PPF Account is allowed renewal, why is the HUF PPF Account prohibited from doing the same?

As with anything in our country, people have misused this PPF facility. The same person opens an individual PPF account to earn a 8% tax free interest at one post office/bank and then opens another as part of a HUF to enjoy double benefits. As the government doesnt want to restrict all HUF's in one shot, they have restricted the renewal so that people dont continue to misuse the facility.

Q45. I have a HUF along with my wife and daughters. What happens when my daughters get married?

When your daughter gets married, they are no longer part of your HUF. So, they are not part of the PPF Account as well.

Hopefully this answered all your PPF related questions. If it did, don’t forget to share it with your friends to that they too may take advantage of this wonderful tax saving investment option. If you have any more questions, feel free to leave a comment and I will answer them...

Happy Investing!!!

199 comments:

  1. Hi,

    My father opened ppf account on my brother's name when he was minor. Now he is adult but doesn't have relations with family members. We have legal documents stating we don't have anything to do with him even financially. My father is the one who was contributing. Amount matures in 2015, can my father get money? if not whar are the options? Please help. Thanks for your time and efforts. Its amazing!

    ReplyDelete
    Replies
    1. Though it was your father who opened it, the account belongs to your brother. But, anyways - you should consult a good lawyer. Your brother may have legal claim on that ppf account

      Delete
  2. Hi,

    Thanks for the very nice article. One of the points mentioned is, if I open a ppf account on my name and as a guardian another one on my daughter's name(minor and has her own pan number). Will interest be credited to both the accounts. In the article you said interest will be applicable to only one account. And in comments section you said interest will be provided to both. Bank folks are also not able to give a clear picture on this. It will be of great help if you can answer this for me?

    Thanks
    Hari

    ReplyDelete
    Replies
    1. Hari - You will get interest in both accounts but depositing more than the upper limit and earning interest on both accounts is not considered legal. So, as long as you deposit a total of 1.5 lakhs in all of the ppf accounts held under your name (or as you the guardian) you are fine and you will get interest in all of the accounts.

      Anand

      Delete
  3. I have a PPF A/C with SBI, which has been extended for 2 terms of 5 yrs each after maturity period of 15 yrs. I was informed by SBI two years back that after 25 yrs PPF A/C can be closed any time. So, I have been depositing money in the a/c for the last two tears also ( total 27 years since inception). Now when I went to bank to close the a/c , the bank informed that it can be done after completion of this 5 years block period.

    Question : 1) Is it correct?
    2) How can I close the a/c now since I need the money

    ReplyDelete
    Replies
    1. Hi - As far as I know, the extension can happen only twice and during that period you can withdraw once ever year. This 3rd extension is new to me. But anyways - once extended for 5 years, you can withdraw a portion of it - once a year and withdraw the full amount at the end of the 5 year period.

      Delete
    2. Thanks for your reply Anand. This is definitely helpful.

      Regards
      Hari

      Delete
    3. You can extend your PPF account by a term of 5 years each, any number of times, after completing the initial 15 years of lock in period. so, 15+5+5+5+5+5+5+...... is legally correct

      Delete
  4. 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…

    ReplyDelete
    Replies
    1. Firstly you would need to get the name in the PPF Account changed to match the name as per records (marksheet, passport etc). Then your son can withdraw the funds from the account once the acc is 15 years old and the deposit matures.

      Delete
  5. Hello Anand,

    I have a question, which I think you'd have the answer. We (my company where I work) have an online portal where we'd put in our expenses (before hand, in April Month) for getting tax rebates for the coming FY. The problem is I've put my PPF contribution as 12000 in the portal where I have planned to deposit 1000 per month. However, when doing the tax proof submission in January, I have got the PPF passbook showing only 10000 corpus in the PPF account for the FY. As I still have 2 months left to deposit the corpus, would I still get 12000 tax rebate? Or do I have to contribute more to reach 12000 for tax proof submission

    ReplyDelete
    Replies
    1. Hi, many companies actually do this. They ask you to put an indicative number so that they dont over-deduct your income tax. However when you are asked to submit proof - the calculations they will do would be based on the actuals. What is the guarantee that you will make an additional 2000 rupee deposit next month? What if your company gives you tax benefits for 12000 and you dont deposit the 2000 rupees into your PPF and eventually end up paying lower taxes that due?

      You can contribute whatever amount you want and give receipt/proof to your company to gain the benefit. If you miss your companys cut-off date, you can still claim the benefits as long as the investments were made before 31st march 2015.

      Hope you checked out my book on indian income tax and have planned out your tax savings for this year. If not, check it out here: http://anandvijayakumar.blogspot.sg/p/books-by-this-blog-author.html

      Delete
  6. I am working in merchant navy and hold an nre account. I opened a ppf account by mistake. The bank employees also didn't tell me that I am not eligible for opening a ppf account. What can I do in this case? Is there a way too close the account?

    ReplyDelete
    Replies
    1. Thank you for your reply. What can be done in this case?

      Delete
    2. I think - You should disclose to the authorities the fact that you are technically an NRI now and once done, you should contribute from your NRE Account and follow the regulations that apply to an Indian who went abroad after opening the account.

      Delete
  7. my ppf cheque is lost, how can i reissue new cheque ?

    ReplyDelete
    Replies
    1. contact the post office or bank branch from which you got the cheque. They will ask for proof tht cheque is lost (like a police FIR) and then issue a new cheque.

      Delete
  8. Thank you Anand for the detailed blog. I am an NRI and understand that I cannot open ppf account for myself. I am looking for options to open ppf account for minor kids. Is it possible to open ppf account for kids residing outside India? I was not able to find any relevant information. Would you be able to share your valuable inputs on the same?

    Thank you.

    Regards
    Ravi

    ReplyDelete
  9. hello. i have opened a ppf a/c in my daughters name when she was minor. now when she is major can i still invest in her ppf a/c . to mention that she is dependent on me. can i get a tax benefit of such deduction.

    ReplyDelete
    Replies
    1. Until your daughter starts earning or until she gets married she can technically still be considered financially dependent on you

      Delete
  10. Hi, I opened my ppf account in Feb 2011, when can I make partial withdrawal? April 2016 or April 2017?

    ReplyDelete
  11. I am a retired banker and my ppf account is already closed. My wife is having PPF a/c. Out of the total investment limit of Rs.1.50 lacs in PPF a/c, she has invested Rs.1.00 lacs during the current financial year (2014-15). For the remaining amount of Rs.50,000/-, can I make investment and claim rebate under section 80C.

    R.Vijayaraghavan, Chennai

    ReplyDelete
    Replies
    1. If your wife is a house wife (home maker) with no income, then Yes. If she is employed and is using the PPF Acc to claim 80C benefits against her name, then No you cannot.

      Delete
  12. I am an employee working as school teacher in Andhra Pradesh. I am having an Zilla Parishad Provident fund account. Can I open PPF account and claim rebate under section 80C. Swarnalatha, Visakhapatnam

    ReplyDelete
  13. Hi,

    Is it possible to get the money from a discontnued PPF account (where contributions were not made for the all the 15 years and discontinued after 4-5 years ) to the same savings bank account where the ppf account is maintained ?Would it be necessary to show PAN ?Thanks in advance .

    ReplyDelete
    Replies
    1. Yes, you can get the money and yes you will be asked to show your PAN

      Delete
  14. How much time/days bank will take to reactivate dormant PPF account?

    ReplyDelete
    Replies
    1. Usually around 1-2 weeks. It may vary based on where your account was opened, how long it has been dormant etc

      Delete
  15. Hi,
    I am an Australian citizen resident in India and also have a OCI card (Overseas Citizen of India). I have only Indian income and ma filing my tax returns in India since i am resident in India for tax purposes. My PPF a/c which I opened before I acquired foreign citizenship is now maturing 15 years in this year. Can I extend my PPF a/c on the grounds that although I have a OCI status however I am RESIDENT in India.

    Unfortunately none of the branches have any idea wrt this case. They keep saying that NRIs cant open or extend - but are clueless when it comes to being a RESIDENT-OCI. Any information will be much appreciated.

    Regards.

    ReplyDelete
    Replies
    1. No, I dont think you can renew your PPF Acc now. Even though you are a resident of India from taxation stand point, you are a citizen of a different country and hence you would not be eligible to either renew your PPF Account or open a new one.

      Delete
  16. Hi Anand! I am very late in going for PPF as a tax saving investment for the current financial year. I want to know how much time does ICICI Bank take to open a PPF account. I mean if I go to the bank on 28th March, would I be able to make investment that would be counted for tax saving for the current financial year? Would the date of investment be the date of application (and cheque along with it) or would I be able to invest in PPF account only a few days after submitting the application.

    Thanks

    ReplyDelete
    Replies
    1. The date of account opening is usually counted as the date of investment. If you open via ICICI, there may be a few days delay between you filling up forms with ICICI and the account opening. Even if you vist a post office here may be a couple of days gap between you filling forms and account getting opened.

      So, it is better you start off early and give at least a weeks time between the date you visit the bank or the financial year end closure.

      I have just published the 2nd edition of my tax saving book. You can check out the different tax saving options available in India here: http://anandvijayakumar.blogspot.sg/2015/03/your-complete-guide-to-indian-income.html

      Delete
  17. Hi sir...I have doubt please clarity. I have deposited 5500 every month in last financial year..but when I checked my acc on march 31 .the interest received is 3777. Is it correct amount because u told intrest rate is 8.1%. My total deposit is around 70000 . Interest should be around 6000. Can u please clarify this..

    ReplyDelete
    Replies
    1. Hi - If you had deposited 70000 during the first month, then yes you would have got the 6000 rupees as interest. For the first month you get interest for 5500 rupees and second month 11000 rupees and so on. That is why you got lower interest.

      Delete
  18. Hi Anand! Any amount that you invest in a PPF is tax-free or investing 1 lac annually is mandatory for tax benefits (red it somewhere)?

    ReplyDelete
    Replies
    1. Questions 9 to 11 are covering this question. Whatever amount you invest is eligible for tax benefits under Section 80C (up to 1.5 lakhs maximum)

      Delete
  19. Hi Anand,
    Can a company open a PPF account for its employee. My wife has a PPF account in which her company pays the half amount. They have withheld the passbook and say that they will release it only after 15 years.Do they have a right to do that?

    ReplyDelete
    Replies
    1. PPF is a private investment option. I am not sure how this is feasible where the company retains the passbook. I have never heard of such an facility provided by any employer. '

      Maybe you can visit your nearby post office and inquire if they can help.

      Delete
  20. Hi Anand,
    I defaulted for 2014-15 ppf payement.
    So i made two payment.
    1,50,050 for 2014-15 ( inlcudes 50 /= for revival charge. )
    another 1,50,000 for 2015-16.
    Bank refused one payment saying that in a financial year i cannot make more than 1,50,000. But i read rules which says that minimum Rs. 500 should be paid for each defaulted year. so in this way i can submit max 1,50,000 for that defaulted year.
    Please let know whether i can do above and bank is wrong in doing this ?

    -Ashish

    ReplyDelete
    Replies
    1. Ashish the upper limit per year is 1.5 lakhs and this includes the revival charge, the overdue amount for last year as well as contributions for this year.

      So, considering 50 rupee revival fee and 500 rupees for last year, you can deposit a maximum of 1,49,450 this year into your PPF Account.

      Note: Once a year is missed, you cannot backfill an extra 1.5 lakhs for that year later

      Delete
  21. Hi Anand,

    I inadvertantly continued to deposit the money after 15 years were over. now after total 18 years (15+3), can I withdraw the money or I have to wait for another 2 years. I did not actively opt for PF extension.

    ReplyDelete
    Replies
    1. You have to wait for 2 years to get the full money. However, you can withdraw a part of the money if you want. Contact your bank/post office for details.

      Delete
  22. Hi Anand,

    I did my engineering from Pune and currently working in Delhi in an IT firm.

    Today I opened a PPF account in SBI.
    But the passbook which I get contains My address as Pune address instead of Delhi Address. I have submitted Delhi Address proof.
    SBI personal told me that I had purchased DDA Flat Form so they have Pune address in there System corresponding to PAN number and this need level 5 access to change the address in system. So they open PPF account with my old address.

    Do you see this as threat which could lead to any kind of complication at the time of Withdrawal PPF money after maturity.

    Please let me know if I need to get this address change for PPF account?

    - Sudhanshu Singh

    ReplyDelete
    Replies
    1. What? why cant they simply get the address updated as per the proof you gave them? i think the reason given is highly ridiculous. Contact someone else from the branch or a different SBI branch

      Ok - if they want a level 5 access, ask them to get that whatever access and get the update done.

      I dont think address in pune/delhi will be a major problem but its always good to have the ppf records show your most recent and correct address. Even if you move to a different city lets say Kolkata, you will be asked to update your ppf address. What will they say that time? They need level 6 access?

      Delete
  23. Dear Anand

    I opened ppf acc with Bank of india, but they are saying that they wont be able to issue passbook. Is having a passbook mandatory while doing withdrawal at maturity ???

    ReplyDelete
    Replies
    1. Why wont they issue a passbook - did you ask for a reason? Yes, you need a passbook (Either physical or electronic) without which you wont be able to get the maturity amount.

      Delete

  24. hi anand,

    if i deposited greater than the max limit per year, will the extra amount get interest in next year ?
    Will that extra amount be considered as installment for next year or still I have to pay min 500rs for next year ?

    ReplyDelete
    Replies
    1. 1. Any amount beyond the maximum amount in a year Will Not earn interest even if you are talking about future years.
      2. No, it will not be considered for next year. You have to deposit at least 500 rupees next year

      Delete
  25. Hi Anand,

    Your blog is quite useful. But I have a specific question for which I am unable to get the answer.

    I have a PPF in Srirampura PO in Bangalore. Of late I find it is always crowded at the counters. Can I deposit in my PPF account in some other PO?

    Will thank you to email me your answer. My email ID is rkowlagi@gmail.com

    TIA

    ReplyDelete
    Replies
    1. Yes, I think it should be ok to deposit in a different branch

      Delete
  26. Dear Mr Anand

    My mother had a PPF A/c which is due to Mature in April 2017. She passed away recently. My father is the nominee in her account.

    We do not need the proceeds immediately and my father has his own PPF Account independently.

    Do we have to inform the bank that we wish to continue account till maturity without making contribution? Will the account be continued in my mothers name? Will it be an issue to continue the account with my father as nominee as he himself has a PPF Account.

    Thanks & Regards
    Jigar

    ReplyDelete
    Replies
    1. Yes, it is your obligation to inform the authorities about the demise of the account holder. Even if you dont need the money you have to inform them.

      Delete
    2. Note that if you dont intimate them now, you may run into issues in the future when you actually go to withdraw the money

      Delete
  27. I opened a PPF account in my name and two PPF accounts in the name of my daughters with me as guardian 15 years ago in a post office. I have been depositing the maximum eligible amount in all three accounts for last fifteen years i.e. Rs. 70000 upto Nov 2011, Rs. 100000/- from Dec 11 to July 14 and Rs. 150000/- since Aug 14. Post office had been applying interest in all the accounts since beginning. The accounts matured last month. On presentation of the passbooks for payment of maturity amount, the post office has paid made me only the principal amount deposited in accounts of my daughters stating that the amounts deposited in their accounts were in excess of the maximum amount that could be deposited under the scheme and hence not eligible for payment of interest. I have now gone through the rules in detail subsequently. And have realized that the amounts were in fact excess than the permitted. The question, however, is whether the post office was not on bliged to advise me any time during last 15 years that I was not following the rules. Further, the fact that they were crediting annual interest in these accounts continuously for 15 years, should not preclude them for denying me payment of interest now. As the amount of interest payable runs in lacs, I wish to take up this matter what are the chances of succeeding in litigation.

    ReplyDelete
    Replies
    1. Sorry anonymous - This is a problem many people face. The maximum amount includes your account plus the accounts of your dependents (Wife/children) and what the post office did is correct as per the rules stated.

      and sadly they are not obliged to tell you this. You are expected to read the terms and conditions before signing up for the product...

      If you try to take up a litigation, per my understanding there is 0% chance of success

      Delete
  28. Hi Anand! I want to know about the provision of claim closure of ppf account by nominee if the passbook is lost. what is the procedure to claim then and under what provision?

    ReplyDelete
    Replies
    1. You cannot claim without the passbook. First apply for a duplicate passbook and then you can close the account once it matures

      Delete
  29. If NRI opens an minor nri ppf account by mistake then what will be legal repercussions. Can we close the amount and request the principal sum only .

    ReplyDelete
    Replies
    1. Usually PPF Account closure is allowed under very rare circumstances. You can contact the bank branch/post office where you actually opened the PPF Acc and request their help citing the fact that you are an NRI

      Delete
  30. Dear Mr. Anand,

    First off, kudos on the blog. Great help for tax-illiterates like me.

    Secondly, I have seen your answer about the revival procedure of PPF account if one year's payment is missed / forgotten. You said the only way is to go the bank branch when I hold the account and proceed from there.

    However, this answer is almost 10 months old now. So I am asking the same thing, a bit differently. Is it possible to pay the fine and revive the account, online? You see, I have moved to Sharjah on a new job very recently. It is not possible for me to take leave right now. So let me know if there is any other way for me to do the revival process without going to India.

    Thank you very much.
    Sandeep

    ReplyDelete
    Replies
    1. Sandeep - No, as far as I know, you cannot do it online. So, you would have to do it the next time you visit India.

      Delete
  31. Hi,

    Can we put 1.5l once in a year instead of every month and still get the same interest.

    ReplyDelete
    Replies
    1. Sure. In fact, you will actually get slightly more interest (instead of investing 12k per month) since you are making a lumpsum investment.

      Delete
  32. Hi friends,
    One of my relative has a query regarding ppf before he approaches the bank.



    Hi.
    Had a query.
    Opened ppf account in 1989.
    Extended it 3rd time again by 5 years from April 2015.
    Tuk 50 percent withdrawal limit in April 2015 itself.
    Now can't withdraw.
    Need money for personal use.
    Never took a loan.
    Can he avail loan now.If yes, how much.
    Pls help
    Regards

    Gautam Kamath

    ReplyDelete
    Replies
    1. Yes, I think so. But, since the money you get as a loan will attract an interest, you may also try getting a loan from any bank

      Delete
  33. Hi Anand,

    I need to open a ppf account in Canara Bank. Unfortunately my branch does not qualify for ppf account. But the nearest branch. I dont want to transfer the account to the nearest branch. Shall I open a account online using the nearest branch? What afterward step should I follow? Thanks in advance

    ReplyDelete
    Replies
    1. Usually if you open an account online, all subsequent transactions have to be taken up online. So, if you are ok with that, then I guess it should be ok.

      Delete
  34. I have a huf a/c for ppf which was opened in 1999 and had matured on 2014 but not yet closed. Now i wanted to close it but i wad said that upto the maturity date i.e 2014 i will recieve the normal interest and for 1 year from 2014 to 2015 i will get interest at the rate of 4%. Is it so and if yes why is it so. Pls reply . Thanks

    ReplyDelete
    Replies
    1. Sumit - For most governmental deposits, unless the depositor renews the deposit, the interest he/she will get is fixed at 4%. You can renew the account now if you want to get the full interest but i dont think they will pay you the backdated interest.

      Delete
  35. But it is said that no deposit is taken for huf a/c from 2011 if matured.

    ReplyDelete
  36. They are not accepting deposit in huf a/c. Can i continue making deposit.

    ReplyDelete
    Replies
    1. No you cannot. The government changed its policy on PPF Accounts for HUF's since 2011 and that is why they are not accepting deposits after the 15 year period

      Delete
  37. Hi Anand,

    I have lost my PPF passbook. Can I make a PPF deposit without the passbook for now or do I need to apply for a replacement first?
    Also, in case of a lost passbook, is any FIR required or just submitting the replacement form at the post office is sufficient? (someone told me that in case amount in the PPF is more than 50k, FIR is also required)

    ReplyDelete
    Replies
    1. Priyanka,
      Usually a FIR is not required but if the branch where you opened/maintain the PPF Account insists, you may be forced to get an FIR to get a replacement passbook.

      Yes, you will need the replacement passbook first before you can make a deposit.

      Delete
  38. hello sir ,

    kudos to your great effort in explaining terms and conditions of the PPF scheme. I have a PPF account on my name in which my father is depositing 1.5 lacs since last 2 years . I am a working person and i have used that 1.5 lacs as deduction in my ITR this return. Am i right in doing so ??

    ReplyDelete
    Replies
    1. Transfer of money between parents & children is perfectly fine as long as the money that is being transferred is a legally earned income for which tax has been paid by the earner.

      So, in short, if your father paid tax on his income and is putting the money into your PPF Acc, as far as I know, it is fine

      Delete
  39. Hi Anand,

    I am shifting to a new city (in India ) and would like to transfer my PPF account from my old city (in India) to the new one. Is it possible to transfer the account from one city to another and if so what is the procedure? Also, in case I shift back to my old city after a few years, is it possible to transfer my account once again from the new city to the old one?

    Thanks for your help!

    ReplyDelete
    Replies
    1. Yes, you can. Just contact the bank branch/post office in your new city and request for a transfer form. Once you fill it up, the transfer should happen easily

      These days you dont need to transfer and can use the same acc in diff cities as long as you have the passbook

      Delete
  40. Replies
    1. Sure. These days you can get a PPF Acc online

      Delete
  41. Sir, is that beneficial to open a ppf account in the last week of november or is it better to open it in the first week of December before 5th as I have a plan to deposit the lump sum amount for this financial year to submit saving declaration?will there be any changes in the interest amount I am going to receive?

    ReplyDelete
    Replies
    1. Usually PPF takes the minimum balance in your account between the 5th and the 30th of the month and calculates monthly interest on it. So, if you deposit your money before the 5th of Dec you may earn a few hundred rupees (depending on how much you deposit) extra interest.

      Delete
  42. i had opened my PPF a/c in head post office which is now far from my home so can i deposit my yearly amount in my near post office or does i have to deposit it in that head post office??

    ReplyDelete
    Replies
    1. You can deposit in your nearest post office. that should be fine

      Delete
  43. Hi Anand,
    My PPF account maturity of 15 years finished on 23-04-2014. After that I have extended my PPF account for another 5 years & deposited some amount in that account on 05-10-2014. But after that on 20-10-2014 I become NRI.
    In this scenario I have to close this extended account or I can continue my investment in the same?
    Please advise.

    ReplyDelete
    Replies
    1. Since you became an NRI After extension, I dont think it should be a problem however you wont be allowed to extend once the account matures again

      Delete
  44. Hi, I am a resident in India and want to open PPF Account. But the source of the funds will be my NRI relative who will send the funds from his NRO account to my resident account as i dont have much earning of my own. Is that OK and can i open PPF account on my name?

    ReplyDelete
    Replies
    1. Sure you can open a PPF Account. Just remember that if the amount you are receiving is high you may need to worry about Gift Tax. Also, once you put the money into your PPF Account, your NRI Relative cannot get the money back from the PPF Account. Only you can take it

      Delete
  45. Hi Anand,

    I have deposited around 3 lakh in my PPF account, and suddenly today I see 1 lakh is missing from the account. There is just credit details in my transaction history and no debit details at all, and in the total I see there is 2 lakhs. How can the money get lost out of no where? I am thinking of lodging a complain, but let me know some other suggestions to get my money which is absconding.

    Thanks a bunch for your help.

    ReplyDelete
    Replies
    1. Pls contact the branch of the bank or post office where you opened the account and inquire. If they are unable to help, talk to the police and file a complaint

      Delete
  46. Hi Anand, Great read.. I have a question if you could help me.. I recently lost my PPF passbook. I opened the account in 2012 at the post office. I remember my account number. However, the post office people said they couldn't issue me a duplicate passbook and if I don't find my passbook, I will lose my entire money., Please guide as I will end up losing close to 2 lacs and also will have to bear huge tax burden this year.

    ReplyDelete
    Replies
    1. Why are they refusing to issue a duplicate passbook? If you have valid identity proof, the PPF Account number then usually they will issue.

      Delete
  47. Hi, thanks for the amazing post. Only one question.. Daughters ppf account. Daughter gets married. Father wants to withdraw the amount in his own name. Is it possible through the nomination form and will there be any tax implications??

    ReplyDelete
    Replies
    1. Though you opened the acc in your daughters name when she was a minor, she is a major now and married. So, the account belongs to her and as far as I know, you wont be able to withdraw

      Delete
  48. I deposited some amount and opened a new PPF account. I wasn't given an account number yet, on the deposit slip, the 'Account no.' was mentioned as 'New'. I was asked to come later to get the passbook. I never went to get it and now I am not in India. How do I get a passbook?

    ReplyDelete
    Replies
    1. Do you have the receipt? IF so, you can ask one of your family member to visit the post office or bank where the account was opened to inquire reg. the same.

      Delete
  49. My PPF account has matured after completing of 15 years I do not want to close it as I donot require cash as of now .
    I will close the same when I need is for construction of a house.

    Can I open a second account now to get income tax benefits .

    ReplyDelete
    Replies
    1. No, I dont think you can open a new PPF Acc while one is still active. So, I would suggest you close the account, invest the money elsewhere and then open a fresh PPF Account.

      Delete
  50. Hi,

    I want to invest INR 70,000 for each financial year. Is it advisable to invest the entire amount before 5th April of every financial year or shall I invest on a monthly basis for each month? Which will yield a better interest at the end of the financial year?

    ReplyDelete
    Replies
    1. Investing in lump will earn more interest at the end of the financial year.

      Delete
  51. Hi Anand,

    I have one question.
    I recently moved abroad, like 5 months back, and I got my NRE account yesterday. So, can I open a PPF account now, since I am still an Indian resident (still haven't completed 183 days abroad). Plus I can see "Open a new PPF account" option in my newly created NRE account.

    Please help.

    ReplyDelete
    Replies
    1. Hi,
      Since you are currently abroad, you are considered an NRI so, you cannot open a new PPF Acc. If you already opened one before leaving India, you could have used the NRE Acc to make payments to the PPF Acc.

      Delete
  52. Hey I want to open an PPF account, Can I change the yearly deposited amount after a few years?

    ReplyDelete
    Replies
    1. Yes, you can. The minimum is 500 rupees and maximum is 1.5 lakhs in one year. You can deposit any amount between the two numbers each year based on your situation

      Delete
  53. Hi , I inntend to open PPF account with my existing passport address , but soon i will be shifting to other state & accordingly my passport also i will get updated. My doubt is do i have update my address in PPF account too? If so, is it possible?

    ReplyDelete
    Replies
    1. Yes, it is possible to update and Yes you have to update the address. Just contact the bank branch (or post office) where you opened the account and request for help to change address and they will help you

      Delete
  54. Hi Anand,

    First of all very nice blog about PPF and you are also replying to queries very promptly. That is very good thing. Keep it up. I have few queries related to PPF Death claim:

    1. There are 3 nominees PPF account. One of the nominees is not alive now. I understand that the money will be distributed to the remaining 2 nominees. However, bank is telling me that all the legal heir of first nominee who had died will also get portion of it. Please clarify if it is correct or not. Personally, I don't agree with bank.
    2. If there are 2 nominees and one of the nominee wants to forgo his share in PPF Claim amount then is there process to do that ?

    Thanks for your reply in advance.

    ReplyDelete
    Replies
    1. 1. As far as I know, if there are 3 nominees and one is dead, yes the legal hier(s) of that nominee will get a share. If you have a doubt, pls consult a good lawyer
      2. Ask the 2nd nominee to collect his/her share and give it to the 1st nominee (This will be the simplest option). Alternately you can consult a lawyer, sign a no objection certificate saying the 2nd nominee doesnt have a problem in giving up his/her share in the PPF

      Delete
  55. I hv ppf account with 5000 monthly auto debit. Can i deposit additional amount in my account apart from monthly deposit?

    ReplyDelete
    Replies
    1. See answer to Question No. 10 in the article above

      Delete
  56. I am an NRI. Can I pay installment payments through my wife’s SB account in ICICI? any issues with IT dept?

    ReplyDelete
    Replies
    1. If your wife is a Resident Indian - No, it should be ok. If she is an NRI like you, its wrong

      Delete
  57. Hi Anand,

    I am an NRI residing in Gulf, and I would like to open an PPF account with ICICI. As an NRI probably I wont get this facility, So I am planning to open it through my wife’s SB account. Could you please help me with my below queries.

    1) Can I pay installments through online? Like from my NRE to my wife’s SB and then to both the accounts (PPF & Sukanya)? Any issues with IT dept? Do we need to show the source of income?
    2) Can I pay as lump sum (any amount? Or yearly once/whenever I have money?
    3) Will there be a difference in due amount for onetime payment and paying through monthly or quarterly installment? Can I increase or decrease the amount payable after certain period?
    6) In PPF account, What are the extra benefits I will be getting if I open this account in my two sons? Upon due, I will have any control on the due amount?
    7) How long I should invest in PPF? When is the Maturity date and amount with the current interest rate and 1.5L per year investment?
    8) Can I convert the maturity amount to a pension plan like monthly fixed amount for life long?
    9) What are the minimum and maximum amount can be invested in the plans?
    10) Is there any deductible tax upon due?

    Regards,

    Johny

    ReplyDelete
    Replies
    1. Are your wife & kids Resident Indians by status or do they live with you ?

      1) If your wife lives in India and is a Resident Indian, then YES

      2) See answer to Question 10 in the article above

      3) Depending on how much you deposit, the return will change. Yes, you can change the amount. Again, Refer to Q10

      6) If your kids are Majors after the 15 year maturity, you will get the money and if they are Major, they will get to control the maturity proceeds.

      7) Read this article for details on PPF: http://anandvijayakumar.blogspot.sg/2012/08/public-provident-fund-ppf-de-mystified.html


      8) Its your money, you can do whatever you want. However PPF doesnt offer pension plans. You just take the money at maturity and use it the way you want.

      9) Pension plan? You can invest any amount you want

      10) maturity is tax free

      Delete
    2. Thanks for the answering my queries Anand. Just one more question. My wife lives with me and having a resident permit in Middle east. But majority of the time she travels back to India due to the aged parents. She does not have any NRE account and still holds her SB account. Will that be an issue to open the PPF or Sukanya in that case?

      Delete
    3. As she has a resident permit in the middle east, she is technically an NRI and should not be having a regular SB Account. So, as an NRI family you will not be eligible to open a fresh PPF Account.

      Delete
  58. Hi Anand

    I am an NRI, living in UK from 2009 and I opened my PPF Account in 2000 when I was in India. My PPF Account was active from the date I opened with regular deposits every year and it is maturing by 31-03-2016.

    Ideally I wanted to maintain the PPF Account after 31-03-2016 as I do not want to withdraw the maturity amount on 01-04-2016 and I will not deposit any amount in it. I want to keep this amount in unattended PPF account in which can I avail the interest benefit and will withdraw the funds when I wanted in near future probably in 1 or 2 years.

    My father enquired this option to the Bank but been responded that no interest will be paid. I feel this may not be the case and started searching PPF Rule / Policy Guildelines but couldn't find any information. Can I have your clarification on the options to maintain my PPF Account without making any further deposits but availing interests every year and to close it when I need.

    Regards

    Krishna

    ReplyDelete
    Replies
    1. Krishna - As an NRI you are not supposed to continue with the PPF Account post maturity. So, I would recommend you get the money and invest in other options instead.

      Delete
  59. Hi – I have a query .

    Can I open a PPF account now within 31 March 2016 to avail 8.70 % interest .After 1 April 2016 , it will be 8.10 % interest. Please advise

    ReplyDelete
    Replies
    1. You can open a PPF Acc any time you want but the interest you get will depend on the rate offered for that year.

      Lets say you open an acc now @ 8.7% and next year government increases to 9.5, would you be ok if you still earn 8.7%? Thats the concept here. Government will pay uniform interest every year to all customers depending on their account balance

      Delete
  60. Hi Anand, first of all great blog for investors.

    My Post office PPF account is in Uttaranchal.I have moved to Delhi.I have opened my account in 2010. As per new rules on 23rd feb 2016,i can withdraw entire amount.
    Can I withdraw the same in Delhi.I have all details with me but I don't have passbook. I have 10 digit SOL number with me.

    ReplyDelete
    Replies
    1. I think you confused EPF and PPF. The recent rule change about not able to withdraw entire amount was for Employee Provident Fund or EPF. We are talking about Public Provident Fund or PPF.

      See here: http://anandvijayakumar.blogspot.sg/2016/03/recent-changes-to-epf-regulations-in.html

      Delete
  61. Hello,
    I have a doubt pls clear it.
    I am working in merchant navy..
    I get salary in dollars and i am also filing my IT returns..
    When i was working for indian company i was paying tax because i did not completed my NRI days of 183.
    Now i am working for foreign company on ship ...for the year 2016.-2017 i have completed my 183 days..

    In short in some financial year i am in india and some year i am abroad ...now i will at home for almost 1 or 1and half year for my promotion exams in India itself. no income at all..

    So in short o want to ask that i work in merchant navy..can i open PPF account..
    Please help .
    TIA

    ReplyDelete
    Replies
    1. As far as I know, being in the merchant navy, you are technically considered an NRI so you wont be eligible to open a PPF Acc.

      Delete
  62. I opened a PPF account for 15 years. Then I extended it for a block of 5 years with regular contributions. Again I extended it for a block of 5 years. Now, I am in the 2nd block of 5 years. But I could not make any contribution during the last financial year (2015-16), as I lost my job. Now, I don’t want to revive it.

    My question:-
    Can I close my PPF account now? Or Can I withdraw “any amount” since it has become “Discontinued Account” as per rules? Please advise as I am badly in need of money.

    ReplyDelete
    Replies
    1. See answer to Question No. 8 in the article

      Delete
  63. hunting an answer for this question,

    On the death of the PPF account holder with a nomination in place, the rules state funds are to be handed over to the nominee. Can this funds be deposited in the nominees existing PPF account ?

    ReplyDelete
    Replies
    1. No, I dont think you can get the money directly put into your PPF Account. The nominee has to collect the money and then deposit it into their PPF Acc or whatever acc they want

      Delete
  64. Hi Anand Sir,
    I wish to open a PPF account with SBI in Bengaluru. My Home Branch is in Coimbatore,Tamil Nadu.I wish my PPF account to be linked with my Home Branch Bank Account.What are the documents I will have to produce before submitting the forms to the non home Branch in Bengaluru? Since I do not have a passbook will a Xerox copy of it will suffice?

    ReplyDelete
    Replies
    1. These days all accounts are considered equal across the country and hence I dont think this linking will be an issue. You can talk to the branch in Coimbatore for more details

      Delete
  65. In case, if I invest 1,50,000 (per current allowed limit for deposit in PPF & for exemption in 80C) and also upto 1,00,000 in EPF or fixed deposit etc. for deduction under section 80C ....... AS I understand for tax deductions purpose only upto 1,50,000 shall be exempt under section 80C and remaining 1,00,000 will be taxable.
    However, my query is whether will I received the PPF interest on whole 1,50,000 or only INR 50,000 which was eligible for deduction under section 80C?

    ReplyDelete
    Replies
    1. The interest you get on EPF or PPF or Fixed Deposit with 80C benefit will be based on the amount you invest in each of them individually. However, the combined tax benefit can only be 1.5 lakhs. You could invest 1 lakh each in EPF, PPF and FD to get interest in each of them but total tax benefit will only be for 1.5 lakhs. The remaining 1.5 lakhs will be taxable

      Delete
  66. Hi,

    I have opened a PPF Account in SBI in Pune during 2011 and invested some 1000 Rs during the opening of this account. After that I didn't make any contribution. Now I am in Bangalore and want to re activate my PPF account. Can I do that in any SBI Branch in Bangalore or I need to go to the Pune Branch for the same.

    Please suggest.
    dibyajyoti.koch@gmail.com

    ReplyDelete
    Replies
    1. I think you can do that in Bangalore provided you have the PPF Passbook and are willing to pay the penalties to revive the account.

      Delete
  67. Hi Vijay,

    I have opened a PPF Account in Delhi, I lost my PPF passbook and I do not remember my PPF Account Number as well, please advise what should be done in this case

    ReplyDelete
    Replies
    1. Without the passbook or account number there isnt much you can do. As a last resort you can contact the bank or post office from which you opened the account and check if they are able to locate the acc details using your name or date of birth etc.

      Delete
  68. . Dear sir, My son opened a PPF A/C in the name of his minor daughter in the post office on 16th February,1996. Subsequently my son moved with his family to Canada and they are Canadian citizen. I deposited money every year in her account. The accumulated amount is around 4 lakhs. How to withdraw the amount now?.I have received copy of her Canadian Pssport, request for withdrawl and authorisation for issue of cheque. Postal authorities are asking for presence of depositor and her guardian. To come from canada, the air fare for two will cost around 2 lakhs besides they have to waste their leave, which is hardle 15 days in a year. Sir, kindly let me know how to withdraw without ther their presence in INdia.

    ReplyDelete
    Replies
    1. Hello sir, Sadly the person who is the primary holder of the account has to be present in person to finish the formalities. you can do the formalities when they actually visit india on vacation in the future

      Delete
  69. Hello sir I have a PPF acc with SBI since 2001.It will mature next year. Few months back I converted my account from physical to digital. In process getting new passbook. My old passbook was not returned to me. Now bank is saying I should have collected it.I do have transaction slips of the bank. How will I be able to close this account?

    ReplyDelete
    Replies
    1. When you have the new passbook, why would they need the old passbook? I dont understand. Its probably some administrative excuse kind of thing. Talk to them again

      Delete
  70. have Savings bank account in Bank of baroda , I want to depoisit online from this account to my PPF account in State Bankf India How to do it ?

    ReplyDelete
    Replies
    1. I am not sure if Bank of Baroda has options to allow online PPF contributions to an account opened with SBI. Pls check with BoB

      Delete
  71. Dear Anand,

    After submitting the form for duplicate passbook how much time does it normally take for issuance of the duplicate passbook?

    ReplyDelete
    Replies
    1. It should not take more than 1-2 weeks but this is one of those governmental procedures without a predefined ETA

      Delete
  72. If mother is maintaining the PPF account in her books in the name of her child. when minor became major, account transferred to child name.
    how can we transfer ppf account balance in child books

    ReplyDelete
    Replies
    1. Hi, what do you mean by transfer of balance in child books?

      Delete
  73. PF account balance we have in parents books.

    ReplyDelete
    Replies
    1. As far as I know, PPF does not allow such transfers between PPF Accounts. The parents can close their PPF Acc, get the money and then deposit the max allowed limit per year into the childs account

      Delete
  74. Hello Anand,

    I have lost the hard copies of our PPF receipts for 2015 which I need for the tax deduction purpose this year. I do not use Internet banking with the SBI. The entries are there in the passbooks. Is there a way to get duplicate receipts? Thanks very much for the support you are offering. Much appreciation.

    ReplyDelete
    Replies
    1. Just contact the branch where you maintain the ppf acc and ask them for a duplicate statement. They should be able to help

      Delete
  75. Hi Anand Sir,
    Could you please help me with my current situation. A PPF was opened by my dad in my name in March, 1995. The PPF matured in 2010 and at that time my dad had extended it for further 5 years. The 5 year extension came to an end in 2015, April. As per my information it could have been further extended for 5 years if the application could have been given for the same within a year's time i.e. by April 2016. Now the problem is that my dad forgot to do so as he was suffering from some health issues during that period. I want to ask you that is there any way that the same PPF can now be extended further for 5 years by paying any penalty or by any other means. Kindly advise.Your help is greatly appreciated.

    Regards,
    Varun

    ReplyDelete
    Replies
    1. No, as far as I know, such options don't exist. You may be asked to withdraw the balance

      Delete
  76. I m working in a private organisation and maintaining a PPF account for last 3 years, If i loose my job and has no income then after what will be the circumstances.

    ReplyDelete
    Replies
    1. PPF has no relation to your job. All general rules apply irrespective of whether you are employed or not

      Delete
  77. Is it advisable to transfer my PPF account from Post office to SBI as it offers more transparency and online transaction is possible.

    ReplyDelete
    Replies
    1. I am not aware of such transfer options for PPF. You can check if that is allowed and let the readers of the blog know if such a facility exists

      Delete
  78. Dear Anand

    Thanks for patiently answering all queries. I have a question. I have opened PPF in 2016 March and deposited 1.5 lakhs. Now I do not intend to deposit money every year. Is this ok? Thanks

    ReplyDelete
    Replies
    1. No. you need to deposit atleast 500 rupees each year to keep the account active

      Delete
  79. Hi Anand,

    I have just applied online for PPF account and added my mother and father as my nominee. In later years can I add my husband as one of the nominees?

    ReplyDelete
  80. Hi Anand,

    i have lost my ppf passbook and account number, if i go to post office arr they able to provide the new pass book? what details they will ask me to issue the new one.

    ReplyDelete
    Replies
    1. They will ask you the PPF Acc number and identity proof without which they will probably not be able to help you

      Delete
  81. Hi Anand,

    I recently returned to india after working for 2 years abroad.
    Can I open a PPF account immediately now?

    If yes, Can I open it with some other bank like ICICI/HDFC as they are saying they can open a PPF account.
    I have a SBI account but the home branch is Delhi and I now live in bangalore.

    Thanks

    ReplyDelete
    Replies
    1. Have you returned for Good ? If so, you can open an account after being in India for at least 3 months because as per your residence status you should be a resident indian (not lived outside india for at least 3-6 months preceding acc opening date)

      Yes, you can open with ICICI or HDFC bt they may ask you to open an bank acc with them in order to continue opening the PPF Acc.

      Delete
  82. One of my NRI and he has left India so can he continue his NRI account?

    ReplyDelete
    Replies
    1. You mean can he continue PPF Acc? If so, yes he can.

      Delete
  83. Hi Anand,
    I am an NRI , been residing in UK since last 16 months but will not be here permanently.
    Just assume if my wife(she is in India) has a PPF account, can i contribute in that account? Is it legal and will there be any problem for her in IT return as it will not be her money?

    ReplyDelete
    Replies
    1. If the account is held by a resident Indian then contributions can be made toward the account every year.

      Even nri can continue to contribute to the acc as Long as the acc was opened prior to becoming an nri.

      Delete
    2. I don't have ppf aacount and now realise have made a big mistake. So my wife wont get into any problems if i deposit my money into her ppf account, right?

      Thanks for you reply. Really appreciate it !

      Delete
  84. Hi Anand

    I have monthly deductions of Rs 6660 to my PPF account which tallies Rs 79920 per annum along with other savings but it does not reach limit of Rs 1.5 lac. Can I transfer remaining sum without halting my periodic monthly deductions in my PPF account.
    Please advise

    thanks

    ReplyDelete
    Replies
    1. No, as far as i know, you can only make 12 deposits in a year so, you can either adjust the monthly amount or stop the monthly and make periodic payments per your preference

      Delete
  85. Hi Anand
    I have opened ppf account in Feb 2017 and deposited 150000
    Now when is next deposit can be made can it be made in April 2017

    ReplyDelete
    Replies
    1. Yes. April 2017 is the next financial year so you can deposit again but note that if you put another 1.5lakhs in April 2017, you will need to wait until April 2018 to make the next deposit.

      Delete
  86. Hi Anand - My daughter is working and has PPF Account. Can i deposit money in her PPF account? And can she claim deduction under 80C while filing returns? Thank you. Keep up the wonderful job.

    ReplyDelete
    Replies
    1. Thank you for your kind words.

      Yes she can however you won't be able to avail tax benefits on the deposited money. Only one person can make the tax claim.

      Delete
  87. Hello Anand - I want to deposit money in my ppf account. Can i use cheque from my sister to deposit money into my account?

    ReplyDelete
    Replies
    1. I don't think PPF will accept cheques given by someone else for deposits. You can put the cheque on your bank acc first and then use that to put money into your PPF

      Delete
  88. Dear Anand,
    My wife has opened a PPF account in the name of my daughter. She wants to deposit 1.5 lac in each account (max permissible) and as per rules she will only declare for tax benefit the 1.5 lac she has deposited in her account. Is that allowed or can i only deposit a max of 1.5 lac in both accounts combined.

    ReplyDelete
    Replies
    1. As far as I know, you can only deposit a maximum of 1.5 lakhs in all accounts for a family combined.

      Delete
  89. Hello Anand,
    These information is really helpful. I have lost my SBI PPF passbook. But deposit money in my PPF account through net banking. I can also get yearly PPF account statement from online. Is the hassle of filing an FIR (my branch insists) worth it to get a new Passbook? I mean, after maturity If I can show them the printed online PPF statements, would that be enough to withdraw the matured amount? My account was opened with SBI in 2014. Thanks in advance. Would appreciate your help

    ReplyDelete
    Replies
    1. The whole requirement to have the PPF passbook is quite old and may get phased out by the time your account matures. However, the info I have mentioned is for the present and if someone was having an account that is maturing now, they may be forced by SBI to file an FIR and request a replacement passbook.

      Delete
  90. Hi Anand,
    I recently opened my PPF account and invested some money on 31st-March. Do you have any idea when will be the interest rate reflected in my PPF account? It is currently showing me the same amount as I invested.

    Thank you.

    ReplyDelete
    Replies
    1. Interest will only be paid from april onwards. Its not like a bank where you get interest credited every month. Its a government system. Wait for 2-3 months and by the end of the quarter of April/May/June, you should see the interest for the months credited into your account.

      Delete
  91. Hi Anand,

    I need a query on my POSTAL PPF. I opened a PPF in Pondicherry and I moved to Banglore some 5 years back. My PPF is 13 years old and I want to withdraw some amount for registering a home. Is it Possible to withdraw from Bangalore or should i travel to my hometown?

    Regards,
    Balaguru

    ReplyDelete
    Replies
    1. You should be able to do in the city where you live. I don't think you need to travel to your home town. Pls contact the regional head post office and check.

      Delete
  92. is their is problem while withdrawing if a/c of my wife name-surname is different and nominee or at withdrawal time name of my wife is with my surname

    ReplyDelete
    Replies
    1. The name has to match exactly to the identification document (Passport or andhar) for the withdrawal. If there is a change in surname (from her fathers name to your name) then you need to request a change of acc particulars to make sure there are no problems in the future

      Delete
  93. Hello Anand

    Need your views on the following :

    I have a PPF account in SBI branch, which recently completed 15 years and I sought an extension fo another 5 years with contribution. I have only PPF Accunt at this SBI and no other account. Do you advise that I should open a Savings account to facilitate smooth transfer of funds at time of maturity. I have had some apprehensions that smooth transfer of funds once PPF has closed is difficult if you one has no account in home branch, in terms of delays etc.
    Is that true or it should be easy to get a check or transfer to my other savings account in a private bank?

    Please advise.. also, if I open a Savings account in the same SBI branch as my PPF account, can I do a joint account with my spouse ?

    Thanks

    ReplyDelete
    Replies
    1. Firstly, transfer of the maturity proceeds to any bank account should not be a problem. you don't need to open a bank acc in the same branch to get your money.

      However, if you open an account in the same branch it would definitely be easier. It would be better for a single operated account as the name would match 1:1 with that on your PPF Acc.

      Delete
  94. Mr Shah ,I am karta of ppf HUF account opend by my late father in 2003.We are eligible to close the ppf on 2 april 2018.The bank states to close on 2 april 2018,besides sign on closure form of all family members,they need pan and aakhar of all the family members in karta.Why is this required.I am the karta and anyway the bank has kyc of mine why are they asking these details.

    pl confirm to close ppf of huf aadhar,pan card etc of non karta family members not needed.

    ReplyDelete
    Replies
    1. Sorry, am not the best person to comment on HUF Related matters. The whole HUF rule system has been ultra complicated even before Aadhaar was introduced and now its probably even more complicated. Pls consult a good tax advocate or a chartered accountant.

      Delete
  95. Hi Sir,
    I have opened PPF account on my son on last June 2016 and paid 1,50,000 and for the second year payment i was planing to make payment in january or Feb of 2018. so is there any chance of account deactivation or penalties that will apply. please suggest

    ReplyDelete
    Replies
    1. Hi - you need to make at least one payment each financial year. the June 2016 would go against April 2016 to Mar 2017 financial year and you need to make one more for April 2017 to Mar 2018. So, if you pay in Jan or Feb of 2018 that would be ok with no penalties

      Delete

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