Public Provident Fund (PPF) is considered as most important and safe amongst all tax saving investments schemes. This scheme is falls under the EEE category i.e. Exempt, Exempt and Exempt which means if you invest in it, you will get a deduction u/s 80C on your income. Further, the interest you earn on it alongwith its maturity proceeds will be tax-free in the hand of investor.
While dealing in Public Provident Fund, investors having various doubts therefore in this article I am discussing some Frequently Asked Questions (FAQ) related to PPF. Such as whether more than one account is allowed under PPF or not? Eligibility criteria for PPF account, information related to deposit criteria and interest earning on PPF account balance, loan facility, etc
Page Contents
- Frequently Asked Questions related to Public Provident Fund (PPF) are as under:
- 1. Can I maintain more than Public Provident Fund (PPF) account under my name?
- 2. What is the eligibility for investing under Public Provident Fund (PPF) Scheme, 1968?
- 3. What is the minimum and maximum amount that can be invested under the Public Provident Fund (PPF) Scheme, 1968, in a financial year?
- 4. What happens if I fail to deposit any amount in one or more Financial Years?
- 5. What is the Interest earned in Public Provident Fund (PPF) account?
- 6. When does a Public Provident Fund (PPF) account mature?
- 7. Can I extend the tenure of a Public Provident Fund (PPF) investment beyond the Maturity Period?
- 8. Can I terminate or closed the Public Provident Fund (PPF) account before before maturity?
- 9. Can I withdraw funds from my Public Provident Fund (PPF) Account?
- 10. Can I avail of Loan facility on my Public Provident Fund (PPF) investment?
- 11. What is the process for transferring my existing Public Provident Fund (PPF) account maintained with another bank/post office to Bank of Your Choice?
- 12. Role of another Bank Branch in case of Public Provident Fund (PPF):
1. Can I maintain more than Public Provident Fund (PPF) account under my name?
Only one PPF account can be maintained by an Individual, except an account that is opened on behalf of a minor.
2. What is the eligibility for investing under Public Provident Fund (PPF) Scheme, 1968?
A Public Provident Fund (PPF) account can be opened by resident Indian Individuals and individuals on behalf of minors or a person of unsound mind..
Only one Public Provident Fund (PPF) account can be maintained by an Individual, except an account that is opened on behalf of a minor.
A Public Provident Fund (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 Public Provident Fund (PPF) accounts on behalf of the same minor.
Grand-parents cannot open a Public Provident Fund (PPF) account on behalf of minor grand-child; however, in case of death of both the Father and Mother, Grand-parents can open a Public Provident Fund (PPF) account as guardians of the Grand-child.
3. What is the minimum and maximum amount that can be invested under the Public Provident Fund (PPF) Scheme, 1968, in a financial year?
The minimum deposit amount is Rs. 500 per annum and the upper ceiling limit is Rs. 1,50,000 per annum.
4. What happens if I fail to deposit any amount in one or more Financial Years?
A penalty of Rs. 50 will be levied per year of default, if the customer doesn’t deposit the minimum deposit amount of Rs. 500 on the completion of the financial year.
5. What is the Interest earned in Public Provident Fund (PPF) account?
The current rate of interest on Public Provident Fund (PPF) is 7.9%, which is compounded annually .
6. When does a Public Provident Fund (PPF) account mature?
A Public Provident Fund (PPF) account gets matured after the completion of 15 years from the end of the year in which the account was opened.
7. Can I extend the tenure of a Public Provident Fund (PPF) investment beyond the Maturity Period?
A customer can extend the tenure of a Public Provident Fund (PPF) investment for a block period of 5 years beyond the maturity period by submitting Form 4 within one year from the date of maturity.
8. Can I terminate or closed the Public Provident Fund (PPF) account before before maturity?
No premature withdrawal is allowed for Public Provident Fund (PPF) accounts. Only in the case of the death of a customer, their nominee /legal heir can close the account by submitting the required documents as guided by the Ministry of Finance.
9. Can I withdraw funds from my Public Provident Fund (PPF) Account?
Customer can make one withdrawal every year, from the 7th financial year, of an amount that does not exceed 50% of the balance of the customer credit at the end of the fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower.
Facility of partial withdrawal under PPF Scheme shall be available to the account extended, subject to the condition that the total withdrawal during the block period of five years shall not exceed sixty per cent. of the balance at credit at the commencement of the block period.
Please note that the withdrawal, subject to the ceiling as specified above may be made either in a single or in yearly instalments.
10. Can I avail of Loan facility on my Public Provident Fund (PPF) investment?
Customers can avail the loan after completion of 2 year from the date of Initial subscription but before expiry of 5 years. Application must be file in Form 2 to the accounts office and for the amount which is less than or equal to 25% of total amount of credit balance in your account at the end of 2nd year immediately preceding the year in which the loan is applied for.
11. What is the process for transferring my existing Public Provident Fund (PPF) account maintained with another bank/post office to Bank of Your Choice?
As per the PPF scheme of the Government, subscribers can transfer their PPF account from one authorised bank or Post office to another. In such a case, the PPF account will be considered as a continuing account. To enable customers to transfer their existing PPF accounts to Bank of your choice, the following process must be followed.
The customer approaches the bank or the Post office where his current PPF account is held and makes an application for transfer of PPF account to another Bank’s branch.
Once the application is processed, the existing bank/Post office arrange to send the original documents such as a certified copy of the account, the account opening application, nomination form, specimen signature etc. to another Bank branch address provided by the customer, along with a cheque/DD for the outstanding balance in the PPF account.
12. Role of another Bank Branch in case of Public Provident Fund (PPF):
Once transfer in documents are received at another Bank branch, customers are required to submit fresh PPF account opening form and Nomination form, along with their original passbook . Also customer is required to submit a fresh set of KYC documents.
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(Republished with Amendments)
i have a PPF account, and now i want to open one PPF in my minor child name, is it possible to open, please advise and clear all the things
If a person has PPF account opened when was in India, later on moves to UK and get British Citizenship and then OCI card. Is the person allowed to continue the PPF account investment in same account (if not made dormant)?If not allowed, can person close the account and withdraw all accumulated funds in account?Thank you very much in advance.
BY MISTAKE LAST MONTH I HAVE DEPOSITED AMOUNTPPF PENALTY ACCOUNT INSTEAD OF PPF ACCOUNT.SO PLZ KINDLY GUIDE HO WTO TRANSFER MY AMOUNT TO MY PPF ACCOUNT
hello…
i would like to know i have two ppf acount , one in icici bank nd one in sbi , icici was old (about 4 yrs) one and sbi new one (5 month only), i opened by mistake bcoz i dont know the rule that one person should have only one ppf ac. now i want to close one my icici ppf ac, please suggest me ASAP..
Warm Regards
Rishikesh
WANT TO KNOW THAT SUPPOSE I WANT TO INVEST IN PPF ACCOUNT, I WANT TO DEPOSIT RS.5000 PER MONTH IN PPF ACCOUNT. CAN I INCREASE THAT AMOUNT RS. 5000 IN NEAR FUTURE IN PPF ACCOUNT.
Sir,
By mistake I deposited Rs. 150000/- on 31st March 17 instead of on 01 April 17. Thus in AY 2017-18 the deposit of 300000/-stands. How do I reverse this excess deposit of Rs. 150000/- wrongly made a day earlier
My running PPF account is 19 yrs old (more than maturity period). I do not have spare money to deposit further. I do not want to close it to earn Tax free interest.
Can I withdraw from my PPF each year and deposit the amount in the same PPF account to run it for next five years?
Sir,my self rakesh kumar s/o ishwar dayal , i worked courier company 2002 to 2013 in gurgaon but courier company registred in delhi so my pf a/c in wazirpur delhi when i apply for my pf in 2016 on my pf A/c ,pf office say it already claimed by some one rakesh kumar s /o ram nath , when i talk to courier compny they say we filled wrong a/c pf no of rakesh kr s/o ramnath by mistake ( it was also a worker of courier compny) & it is responsible pf office ,why they are not check father name & dt of birth in ur pf record ,when i talk to pf commissioner they say courier companey responsible why they recomended wrong another rakesh and dt of birth & father name is not our record what can i do , no body can take responsiblty which party i challange in court.pls help urgent from rakesh kumar gurgaon
Sir, can a father (having own PPF a/c) also deposit 150000 in one shot in PPF a/c of his adult son . I know that father can not get rebate in IT Return. is this Fund Trf legal as per income tax rules? can this income of adult son’s PPF a/c be interrogated?
hello
my father was employee in chennai on his death i left chennai and moved to delhi but just came to know his ppf , can i send his pass book and death claim form to the branch in chennai to withdraw the amount , or do i have to visit the branch?
Hi,
I transferred Rs.150000 to PPF account using NEFT in multiple deposits((35000,50000,65000)) today. Does Interest calculate for Rs.150000 or Rs.35000 from this on wards.
Thanks in advance.
Hi
I have a ppf account in the post office that completed 15 years in April 2015. Is it possible to withdraw the same from a different post office branch in the same city? If not is it possible to authorise my mother to draw the amount from the original branch? Also will the post office transfer the amount to my bank account directly instead of a cheque?
My wife paid my minor son ppf but my son return going with me. Rebate kisko milegi.
AFTER 31 MARCH 2016 YOU MAY DEPOSIT ANOTHER 1.50 LAC
NO ABOVE 1.50 LAC NOT ALLOWED YOUR WIFE MAY IF SHE DOES NOT CROSS THE LIMIT OF DEPOSITION
NO BOTH TOTAL SHOULD BE 1.50 LAC ONLY AND OVER LIMIT NOT ALLOWED AUTOMATICLY
GO TO BELONGING POST OFFICE YOU HAVE TO OPEN NEW ACCOUNT THEN IF YOU WANT OPERATE NEW PPF ACCOUNT
NO YOU CANT ONE PERSON ONLY ONE BUT IF YOU HAVE CHILDREN THEN WITH LIMITATION OF DEPOSIT ALL SHOULD NOT EXCEED 1.50 LAC IT MEANS YOU CAN DEPOSIT TOTAL 1.50 LACS PER YEAR IN PPF
HE IS ELIGIBLE FOR WIDRAWAL IN APRIL 2016
YOU CAN OPEN ACCOUNT IN NAME OF YOUR CHILDREN BUT TOTAL DEPOSIT SHOULD NOT EXCEED 1.5 LAC INCLUDING THREE ACCOUNT, FURTHER ABOUT YOUR WIFE SHE MAY OPEN HER ACCOUNT HERSELF APPLY FOR HER PAN CARD AND HER INCOME WILL NOT ADDED IN YOUR ACCOUNT SHE CAN GET REBATE AS WELL AS YOU
go to belonging p.o. with original and photocopy of your documents ,and also raised a fir in police thana that your passbook of ppf has been lost and then reached to p.o. they will issue you new passbook after verification.
@ john ar :-only nominee can claim the ppf amount the demise of ppf holder , nomination is must, whether parents,wife or sibling but should be nominee
Ppf acc no misplased
Hello Sir,
I would like to know if a PF account holder passes away and the nominees too have expired, can the PF account holder sibling claim the PF amount though he/she is not the nominee?
will the sibling get the PF amount?
Please reply at the earliest.
Note: The PF holder was not married, he was Single.
Dear Sir,
I got confused with how many PPF accounts one family can have ?
One account with my name (Max limit 1.5 lacs)
other account on my wife name (Max limit 1.5 lacs) -is there any clause like wife should be working or non working
What will be the max limit for two individual accounts and if there are 2 children can we open two individual accounts on their names or only we can open joint accounts making them as minor .. what will be the maximum limit for the for the above four individual accounts
My PPF account maturity date was 23-04-2014.
After that I had extended that account for 5 years. I have deposited INR 50000/- on 05-10-2014.
on 20-10-2014 I became NRI. (i.e. after extending ppf account, I became NRI)
In this scenario I have to close the PPF account or I can use this account.
Please advise.
I have a PPF Account in my name from last 6years & i am getting benefit U/S 80C of Income Tax every year.
Now I want to know that can i open 3 new ppf accounts in the name of my Wife & 2 minor son and i will deposit amount in these 3 accounts, but not claim rebate U/S 80C.
The interest earned in these accounts of my wife & two minor son will be treated as my income or will also be tax free.
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
Hi
My ppf was openedd in 1989.
Have extended it again for 5 years.Also utilised the maximum withdrawal possible once extended..50 percent of the corpus.Now I can’t withdraw as per bank officials.
Can I avail loan?
Haven’t availed any loan yet.
In continuation,had extended it this year itself.Also withdrew 50 percent in April 2015 only.
Now I can’t withdraw as per the rules.
Need urgent money.
Can loan be availed?
If yes,how much.
I opened a PPF account in Aug,2009 which probably may mature in F.Y. 2024-2025. Can I again open a PPF account for next 15 years. (without extending for 5 years the existing account).My age is 30 years at present & when I became 44-45, I need to adjust IT benefits for the next 15 years as I retire in 2043 (being a govt. employee).Though section 80C has another options too but they are for short duration. I am thinking for Provident fund upto my age of retirement. Please clarify me in detail on my email erpreetichourishi@gmail.com
How should i make entry of PPF amount as nominee after death of primary accoutn holder of PPF in books of account of primary holder and nominee? I am too much confused.
Can I pay PPF amount on behalf of my father?
Sir,I want to know about the exemption limit in case where assessee have two PPF A/c one in the name of himself and second in the name of his minor child.Can he take deduction for investment made in both accounts and please tell the qualifying limit for such deduction .Whether overall limit of 1.5Lacs is applicable for both investments cumulatively or individually.And my second question is related about whether investment made in PPF A/c (open for minor child)can be take after obtaining majority of the same child.
I have a minor son. I have my PPF account and also opened a PPF account for my minor son. I have contributed Rs. 1.50 lacs in my PPF account. Can I contribute additional amount in my son PPF account. Or total maximum contribution to my account and my son account can not exceed Rs. 1.50 lacs.
Hello. I have opened a PPF account on 27th May 2015. I have already deposited 1,50,000 in my PPF Account. I would like to know the next date on which I can again start depositing the amount. whether that date is the start of next financial year i.e. 1st April or start of next year of my PPf account i.e. 28th May.
I had opened a PPF a/c in SBI last year (2014-15) for Rs 1,50,000. Interest was accrued on 31.3.2015. I again deposited Rs 1,50,000 this year (2015-16). As interest compounded annually, kindly let me know the accrued interest last year will also be included as principle amount while calculating compound interest. I want to say if this year principal amount will be treated as Rs 1,50,000 deposited last year + accrued interest last year on 31.3.2015 + Rs 1,50,000 deposited this year, for calculating interest or I shall be looser for getting interest on accrued interest earned last year on 31.3.2015. Request mail your reply to my mail id ps.admin@indiaexpocentre.com or inform through mobile No 9560897775. I shall be grateful.
sir/mam,
Kindly provide the information about PPF INTEREST. in our pass book of SBI only deposited amount is showing.
Is Interest entry calculated in other account. The amount of Interest not showing in our PPF Bank Pass book
Dear Sir,
PPF account in HUF name. after death of karta what is the procedure and documents required to claim the amount. The PPF account in the name of HUF is in HPO Amravati.Pl guide
after matuarity of my p p f account where shall i invest my money to earn tax free interest
From the beginning, I have not opened PPF account till my present age 60. Can I open PPF account? I would like to request you that can you send me a line reply to my email so that I complied.
What is the way to change the sbi minor atm card to adult atm card, please tell me via mail
Please clarify my below questions:
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?
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?
hi. A PPF was opened by my father when i was a minor. now the PPF has matured after 15 years period. My father has expired and PPF is being operated by my mother. She is a joint holder of the PPF Account. She went to SBI for the claim but they told that the primary account holder (thats me) has to personally come and sign to claim the maturity amount. Now the trouble is that over these 15 years, my location, signature and appearance has changed completely. Please advice on the following:-
* What are the documentation / procedures required to update my PPF account with my present information and signature
* Is it necessary to visit the specific branch for all procedures / claims. PPF was opened in Kharagpur and i am presently based in Hyderabad. We have completely moved out of Kharagpur.
* How do we claim the matured amount.
for more information or to reply, you can contact me on 0964754488 / 07095592244. Email id – atulyanidhi@yahoo.com
Thanks and regards
Atulya
I find several questions on PPF remained unanswered.
I have a very good PPF Account Rules book, which will give you reply to your all the queries.
If you Email me your request on my Email ID: s.s1954@rediffmail.com
I will Email you free of charge, that PPF Account Rules Book, published by National Savings Institute, Finance Department, Government of India, Nagpur, Maharashtra.
Shirish S. Shanbhag, Mumbai-400089. Dated: 26.2.2015.
Can I deposit more than one instalment in a month for a PPF account
My account is in GPO-Mumbai. It is a PPF- HUF account. Its 15 years was completed on 31-3-2012. My account was matured after completion of 15 years. It cannot be extended because of completion of 15 years and it needed to be mandatorily closed as per Govt. notification.
I was not aware of any such notification and the Head Post office has never informed or sent me any letter regarding the compulsory closure of PPF-HUF account after completion of 15 years. It was only in March 2013, when I went to extend the PPF -HUF account for another 5 years, did I come to know that it needed to be mandatorily closed.Then is the post office liable to pay me interest for the balance one year ???
Namaste,
My husband was working in a private company, but company terminated me without given any prior notice to me. So I fight in labour court since 4 years against the company, but company has not to settle my any claim i.e. PPF amount, gratuity, one month of payment etc. Company cant not give the PPF amount because of I am involved in legal disputes in the Hon’ble High Court, Mumbai. Still my PPF amount is in the PPF account only, Can I withdraw my PPF amount, what procedure do for withdraw my PPF mount.
Namaste,
My Husband was working in a private company, but company terminated me without given any prior notice to me. So I fight in labour court since 4 years against the company, but company has not to settle my any claim i.e. PPF amount, gratuity, one month of payment etc. Company cant not give the PPF amount because of I am involved in legal disputes in the Hon’ble High Court, Mumbai. Still my PPF amount is in the PPF account only, Can I withdraw my PPF amount, what procedure do for withdraw my PPF mount.