The Public Provident Fund is the darling of all tax saving investments.  You invest in it and you get a deduction on your income. Besides, the interest you earn on it is tax-free. Since it is a scheme run by the Government of India, it is also totally safe.

PPF refers to Public Provident Fund and is a Long Term Debt Scheme of the Govt. of India on which regular interest is paid. Any Individual (whether Salaried or Self-Employed or any other category) can invest in this scheme and can earn a handsome tax-free return on the same which is usually higher than the return offered by Banks on Fixed Deposits.

1. Where You  can open a PPF Account and How?

a. To open a PPF account, drop  by a State Bank of India branch. SBI’s subsidiary banks can also open accounts. A list of these subsidiary banks is available on the bank’s Web site.You can even visit the nationalised bank in your neighborhood. Selected branches of nationalised banks can also open accounts.The head post office or selection grade sub-post offices also open PPF accounts.

b. You will have to fill up a form. You can take a look or download the form from SBI’s web site. Along with the form, attach a photograph and submit your Permanent Account Number. If you do not have a PAN, then furnish an attested copy of either your ration card, voter’s identity card or passport. When you open an account, you will be given a passbook (just like a bank pass book) in which all subscriptions, interest accrued, withdrawals and loans are recorded.

PPF

Image courtesy of Mister GC at FreeDigitalPhotos.net

2. Who can and who cannot not open PPF Account?

a. Who Can Open PPF Account – Any Individual (whether Salaried or Self-Employed or any other category) can invest in this scheme. HUFs are no more allowed to open any PPF account

b. Who Can Not open PPF Account- NRI’s are not allowed to subscribe to PPF Account. However, if someone opens a PPF Account while he is a Resident of India but subsequently becomes a NRI, he shall be allowed to continue investing in his account.  An NRI can  invest up to Rs 1,00,000 per financial year in an existing account, that is, an account that he opened prior to becoming an NRI. If someone  inadvertently opened an account after becoming an NRI, it is best to close it before it comes to the attention of the concerned authorities in India.

3. You can have only one PPF account in your name

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. What if an Individual have two PPF Account in his/her name?

4. PPF Account cannot be opened Jointly with another individual

4. You cannot open a joint account with another individual. The account can only be opened in one person’s name. You are free to nominate one or more individuals. On the death of the account holder, nominees cannot keep the account going by making contributions. If there are no nominees, the legal heirs get the money. You can open one account for yourself and others for your child/ children. But, on your death, your children cannot make any additional contributions.Regularisation of PPF accounts opened in Joint names

5. Minimum and maximum deposit limit for PPF

A minimum deposit of Rs. 500 must be made during one whole financial year. The maximum that could be deposited is Rs. 1,50,000 in a financial year.  The interest you will earn is currently wef 01.01.2018 is 7.60% per annum (compounded yearly).  Deposits could be in either one go, or in flexible installments (in multiples of Rs. 100). You could vary the amount and the number of installments, as per your convenience, provided you do not exceed 12 installments in one financial year. Failing to deposit the minimum requirement, would lead to your account being discontinued. Interest would however continue to accrue. You could regularize the account again on paying the prescribed default fee along with subscription arrears.FM Increases PPF Investment Limit in a year to Rs. 1.50 Lakh

6. Continuing PPF after the 15 year period

  The PPF account is valid for 15 years. The entire balance can be withdrawn on maturity, that is, after 15 years of the close of the financial year in which you opened the account.  Once your account expires, you can open a new one. The only limitation is that you cannot withdraw it until seven years are completed, after which 50% of your deposits can be withdrawn, if needed.How to extend PPF account beyond 15 years

PPF account holders have an option of extending their 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 normal rate as admissible on PPF account 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.

7. Deposit date in payment of PPF by Cheque

In case of PPF account money deposited  by means of a cheque or demand draft, the date of encashment / Realisation  of the cheque or demand draft will be treated as the date of deposit. This issue becomes particularly relevant in respect of deposits made towards the end of the financial year by cheque / demand draft because if the same is not realised by March 31, then the same will be treated as deposits for the following financial year. This would also have ramifications in respect of the tax deduction being claimed by the individuals in a particular tax year. PPF Circular clarifying regarding reckoning of date of deposit

8. Opening a PPF account for a minor 

Under PPF scheme, an individual may on his own behalf or on behalf of a minor of whom he is a guardian, open a PPF account. Further, either father or mother can open PPF account on behalf of his / her minor child, but both cannot open the account for same child. Instructions on opening of account for minor

9. Loans on PPF Account

Loans can be availed from the 3rd financial year excluding the year of deposit. Amount of such loans must not exceed 25 percent of the amount that stood to the account holder’s credit at the end of the second year immediately preceding the year in which the loan is applied for.

A fresh loan is not allowed when a previous loan or interest is outstanding. Interest is charged at a rate of 2% if repaid 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.

10. Benefit of Investing in PPF – Taxation of PPF

a. Benefit u/s 80C – The Investments made in PPF Account are eligible for deduction u/s 80C

b. Tax Free Interest – No Tax is payable on the Interest Earned on PPF Account.

11. Premature withdrawal from PPF

The entire amount in your account could be withdrawn only on maturity. However, in times of financial crises partial withdrawals are permitted subject to certain ceiling limits. You could withdraw once a year, from the 7th year onwards. Such withdrawals, must not exceed, 50% of the balance at the end of the fourth year, or 50% of the balance at the end of the immediate preceding year, whichever is lower.Tax effect in case of premature closure of PPF Account

12. Pre-mature closure of a PPF account is permissible only in case of death.

The Interest Rate of PPF is decided by the Govt. The Current Interest Rate on PPF is 7.60%. The Interest is computed for a calendar month on the basis of the lowest balance in an account between the close of the 5th day and the end of the month and the Interest is credited to the account of the account holder at the end of the year.

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

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

14. 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. An NRI is not eligible for extension on the PPF account. What happens if you leave the account unattended past the maturity date? “In such cases the account will be considered ‘extended without contribution’ in blocks of 5 years for an unlimited period of time. Extended without contribution means that the NRI will not have to make the minimum yearly investment of Rs 500. His account will continue to earn interest at the prevailing rate. According to the PPF deposit rules the extension can be made for an unlimited period of time.

15. What are the differences and similarities between the National Savings Certificate (NSC) and PPF?

National Savings Certificate (NSC) Public Provident Fund (PPF)
Interest Rate: 7.60 %, compounded annually but payable on maturity(wef 01.01.2018) Interest Paid: 7.60 %,(wef 01.01.2018)compounded annually
No monthly/yearly payments No monthly/yearly payments
Minimum investment: Rs 100 and in multiple of Rs 100/-

Maximum investment: No Limit

Minimum investment: Rs 500 (required annually)Maximum investment: Rs 1,50,000
Duration of investment: 5 years for NSC VIII Issue Duration of investment: 15 years
Can be used as a security for mortgage and other purposes Cannot be used for such purposes
Tax benefit under Section 80 ‘C’ available.Maximum limit: Rs 150,000 Tax benefit under Section 80 ‘C’ available.Maximum limit: Rs 1,50,000
Good medium-term investment option Good long-term investment option
Interest accrues annually is taxable under Income From Other Source and is deemed to be reinvested and therefore allowed as deduction u/s 80C Interest is fully Exempt

Do consider opening a PPF account if you do not have one. You can put in as little as Rs 500 a year to keep it going.

16. Only the person actually depositing the PPF amount gets section 80C benefit

This means if your spouse deposits any amount into your PPF account, you will not be able to claim the deduction benefits under section 80C. Infact, your spouse will be able to (rightfully) claim section 80C deductions on his/her income.

17. You cannot claim section 80C deductions for any amount deposited by you into PPF account of your parents’ or siblings’ accounts

While tax laws allow you to claim 80C tax benefits for deposits into your spouses account, the same rule does not apply to your parents, siblings or relatives.

(Republished with amendments)

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710 Comments

  1. varun says:

    Hi,
    I want to open ppf account in sbi but they are saying sb account is mandatory for opening ppf as during withdrawal it creates practical problems. can you please let me know the problems during withdrawal and their possible solutions so that i do not have to open sb account in sbi.

    varun

  2. SANJIV says:

    Dear Sir,

    I have one query about interest of PPF account.

    Whether interest earned on PPF a/c can be considered as investment under 80C?

    i.e. if I invested Rs.10000/- in particular year and earned interest of Rs.870/- then can I claim only Rs.10000/- as investment under 80C OR Rs.10000/- + 870/- = Total Rs.10870/- can be claim as investment under 80C for particular year?

    Please confirm me.
    With warm regards.

  3. DHARMENDRA KUMAR sharma says:

    Sir,
    Tax rebate in ppf interest ex. My yearly deposited in ppf account Rs.60000/, and its intrest Rs. 4562/ , what I will show saving + Intrest Rs.60000 + 4562 = Rs.64562 (sir pse my confusion end as for possible as )

    My mobile no. 8479924001

  4. Atul M says:

    Hi,

    I had opened a PPF account in a location which is far from my current location.

    I recently updated my PPF passbook in a local branch and realized that I had missed making the minimum deposit for the year FY13. So, I tried to make the minimum deposit of Rs. 500 along with penalty of Rs. 50 (for each year of delay) in a local branch. However, they refused to accept the amount citing that my account had become irregular (since I missed making the deposit for last year) and told me that I can make the payment only in the branch where I had opened the account (i.e. original branch).

    It is practically impossible for me to go all the way to the original branch only to make this minimum deposit + penalty.

    Given that SBI has the concept of branch banking, I found this quite shocking. Why can’t I make a money deposit for last year in my nearest local branch?

    I then checked if I could transfer my PPF account from the original branch to my local branch? Subsequently I can make the required deposits in the local branch itself. When I asked SBI employees in the local branch if I can do this, she said that I would have to approach the original branch only for this and that I cannot apply for the transfer from another branch (as my PPF account had become irregular). I find all this quite baffling.

    Please let me know a convenient solution to this problem.

    Thanks,
    AM

  5. Ajay kumar MD upadhyay says:

    sir , my mom has an a/c in pnb & she gets pension as an employee’s nominee .she’s senior citizen .could she invest in ppf a/c from her savings a/c. if she invest 30000 p.a., after 15 yrs. howmuch money would she get.

  6. Kunal says:

    Hi,

    I have a simple query : I have a joint savings bank account in SBI along with my father . Can I open a PPF account in that SBI branch and link it to my joint account ? If I do so, will I get all the tax benefits associated with PPF as the actual PPF account will be in my name ?

  7. Sai says:

    Hi, I have Opened PPF account this month June 2015 and transferred some amount. Now i am getting doubt like whether this amount will be considered for next financial year or for this year i mean interest and in Next April 2016 i can deposit 1.5 lakhs or the only the remaining amount i need to deposit against the last year.

  8. Balraj says:

    Good Day
    I am a seafarer and remain more than 190 days per financial year outside the country (sailing on board)…. My earning are tax exempt as self eligible for NRI status.
    Can i invest in PPF.

    Brgds
    Balraj

  9. Vishal says:

    Can you continue your PPF account after you become citizen of other country assuming you were resident Indian when you opened the account

  10. Pawan says:

    I am having an Individual PPF Account in my name in which I deposit Rs.150,000 every year and claim deduction of Tax U/s. 80(C). I am having a 6 years old son for whom I would like to open a minor PPF Account and I will be his Natural Guardian in this minor account. I would firstly like to know that if I open a minor PPF Account in her name, can I deposit 150,000 each in both the PPF Accounts every year. As he is a minor, her account will be clubbed in my Individual Account. So can I deposit 150,000 each in both accounts every financial year. I know that I can claim only 150,000 U/s. 80(C) in my Individual Account, but I would like to know whether I can deposit 150,000 each in both the PPF Accounts every year.

  11. Sanjay Mittal says:

    My PPF account is matured on 01.April.2015 but I am in USA and unable to come is near-future… Can my brother in India (who also has PPF account in same post office) withdraw it/take cheque in my name .. any formality i need to send apart from signed withdrawl application, letter.. Pl help my 8 Lac is stuck

  12. SUBHASH PARAKH says:

    is there any problem if i deposit Rs.150000 each to my account and my 2 daughter’s account is there any taxation problem on maturity or else otherwise

  13. Shankar says:

    Guru,

    Can you pls explain do we need to showcase every year investment to the IT department or else we can do one time investment and show that until get maturity period. Because I am not aware and pretty sure about money savings from the tax deduction.

  14. VINAY RANE says:

    Can I open two PPF account in two different bank. I have one PPF account in Bank of India and that account 7 years old. now ome of company to deposit some amount to our ppf account. But company said PFF account should be in SBI Bank only.

    What I can do ????????????

    1. Fresh another PPF account in SBI
    or
    2. Transfer PPF a/c BOI to SBI

    how to Transfer Processor PPF a/c from one bank to another a/c

  15. Manidipa says:

    Thank you for the correct information on premature withdrawal rule for PPF account.

    While searching for PPF account’s comparison with Sukanya Samriddhi Account, most of the places it is given as, premature withdrawal is possible only in the case of death of the account holder, which I guess is a confusion between premature withdrawal & closure. In this article the clauses are given elaborately to understand all the bottom-line aspects.

  16. kumar sanjay says:

    K.sanjay say:-
    sir,
    I want to know that whether interest on matured ppf account is exempt from tax or not (ie. A ppf matured after 25year but still continued in bank and earned intrest during the year,is this intrest will be taxable or non taxable)

  17. Sunny Gupta says:

    Respected Sir,
    i wanted to ask that i have a 3 PPF Acounts
    1. In MY Name
    2. My Wife Name
    3. MY Daughter Name (Minor)

    i submit individual income tax return file on my & my wife name
    now i opened a HUF Account where me, my wife & my daughter are members in it.
    so i just wanted to ask can an HUF contribute in PPF in my Daughter Name (Rs. 1,50,000/-)

    myself & my wife also deposit Rs. 1,50,000/- each in our individual PPF Account.

  18. Pronab Kanta Choudhury says:

    I am a retired man of 69 years . I get Rs.1072 only as pension from EPFO . Recently my wife has retired from govt service , she has got around Rs. 15 Lakhs from GPF. If I deposit that money in senior citizen savings scheme in my name , will it be treated that I have earned Rs.15 Lakhs in this FY from income tax point of view?

  19. Ajay says:

    Sangeeta Says:

    03/21/2015 At 12:42 PM

    Can a single installment of Rs.1.50 lakh be deposited into PPF A/c on April 1 of each year?

    Yes Sangeeta, You can deposit entire amount

  20. kumud shah says:

    Sir My HUF PPF Account mature on march 2014 and i Withdraw amount on nov 2014 Please clearify i will get interest from April 2014 top Seo.2014

  21. Bineet says:

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

  22. MRINMOY GHOSH CHOUDHURY says:

    My PPF A/C is maturing this 31st March. I intend to extend it for five more years.
    I will keep the a/c operational by depositing rupees five hundred.However the PPF a/c is earning some amount of yearly interest every year. Nothing is being withdrawn.
    Is the interest earning amount can be considered as investment under 80cc?
    I am not withdrawing any amount .That means the earned interest remains in PPF account.

    Best Regards

    M G Choudhury

  23. cjf dsouza says:

    You have made a significant error in that the maximun that can be deposited in a ppf a/c is rs. 10 lakhs and of this only rs.1,50,000 is eligible for deduction
    please clarify this

  24. SUMITA NASKAR says:

    Sir,

    How many ppf a/c can I open on behalf of my children?is there any restriction?

    Can I nominate a nominee while I am opening the PPF on behalf of my Child?

    Regards,
    Sumita Naskar

  25. GIRISH KUMAR says:

    SIR,

    MY PPF ACCOUNT IS MATURING IN JAN. 2016, IF I DEPOSIT A SUM OF RS. 1.00 LAC IN MY PPF ACCOUNT IN THE MONTH OF SEPT 2015 WHETHER THAT AMOUNT WILL BE ELIGIBLE FOR REBATE UNDER I.T ACT.

    REGARDS.

    GIRISH KUMAR

  26. Ajay says:

    Dear Sir,

    i was having a PPF account with post office for a long time. last year i get open one more account in bank. as an individual can have only one account what should i do??
    1. can i transfer my latest account to my minor son or my wife???
    2. Is there any procedure to merge these two accounts???
    3. can i close my latest account???
    4. what is the procedure to close my latest account with bank???

  27. jaydeep kumar says:

    i am having a salaried a/c with icici bank and i will receive my first salary on 1st april. but till now i didn’t get my pan card from pan card office, is there any procedure to deduct minimum tax from my salary as i am unable to submit my pan number before april?

  28. GRKPS NARAYANA says:

    Dear Sir,

    I am having one PPF account in my name at State Bank Of India and another PPF account in my Minor son’s name with same bank and branch. Please let me know whether the interest earned in my Minos son’s is exempt in my hands as a gaurdian or taxable.

    Regards
    GRKPS NARAYANA
    9849955678

  29. NIrmal says:

    Sir

    I and my wife both are tax payer and i have PPF account but the amount was deposited by my wife in my PPF account through cheque. Can she take the benefit of Tax or not.

    NC uniyal, Dehradun

  30. Vijay Kumar Narula says:

    What are the rules for closing ppf a/c after 18 years . I have renewed for 05 years after 15 years. Now I wanted to close my ppf a/c.How can I close my PPF A/C

  31. SP GHOSAL says:

    SIR
    I HAVE GOT PPF AC WITH SBI I HAD OPENED IT ON 2010 CAN I TAKE LOAN FROM THAT AND WHAT IS THE RATE OF INTEREST FOR THAT AND HOW MANY INSTALMENT I HAVE TO PAY FOR LOAN REPAYMENT.
    SP GHOSAL

  32. amarnath says:

    sir my ac is sb in my account service tax and epf amount pay every year more then 1000000 pay my dout is any income tax raise on this or any other charges will be raise please give the clarification

  33. Dipali says:

    Sir,
    I open my ppf account in IDBI Bank Badlapur [E] Dist. Thane State Maharashtra. But from last two years i am unable to deposit in my account. Now i want to continue my same account what can i do for the same give me suggestion.

  34. Dipali says:

    Sir,
    I open my ppf a/c in IDBI Bank, Badlapur Dist- thane Maharashtra but last two years i am unable to deposit amount in my account now i want to continue this account what can i do. Please give me the suggestion.

  35. kuljit says:

    Sir
    I have nro account and have Indian income from pension/intrest/rent/agriculture income. How I can save my income tax by making savings in particular scheams(pl advise the scheam).Can take benefit of ppf on Indian income .Looking for your valuable advise.
    Thanks
    Kuljit

  36. Santosh says:

    If anyone open PPF a/c on own name and another PPF A/c on spouse name what will be the total limit of deposite for both the a/c. is it total 1.5 lac or 1.5 lac per individual a/c ie Total 3.0lac.

  37. dinesh says:

    i have two PPF ACCOUNT IN SBI .ONE ACCOUNT LIMIT IS OVER 15 YEAR. SECOND PPF ACCOUNT IS SINCE LAST 2 YEAR.WHAT IS RULES IF WE HAVE TWO A/C. WHAT IS PROCEDURE TO CLOSE SECOND A/C.WHEN I OPEN SECOND A/C I DONOT KNOW ANY RULES.I WANT WITHDRAW FIRST A/C MONEY. IF AS PER PAN CARD BANK FOUND TWO PPF A/C. ANY LEGAL ACTION TAKEN AGAINST ME OR BANK ADVISE TO STOP SECOND A/C.PL REPLY URGENT.

  38. hp says:

    I forgot to pay for ppf in the financial year 2013-2014. I have activated my account by paying a penalty of Rs 50.
    Am I eligible for a tax benefit of Rs 1,00,000 by paying the same in ppf account for the FY 2013-14. Is such facility available after the FY has ended.

  39. hp says:

    Sir,
    I forgot to pay for ppf in the financial year 2013-2014. I have activated my account by paying a penalty of Rs 50.
    Am I eligible for a tax benefit of Rs 1,00,000 by paying the same in ppf account for the FY 2013-14. Is such facility available after the FY has ended.

  40. rahul says:

    I am having an Individual PPF Account in my name in which I deposit Rs.100,000 every year and claim deduction of Tax U/s. 80(C). I am having a 6 years old son for whom I would like to open a minor PPF Account and I will be his Natural Guardian in this minor account. I would firstly like to know that if I open a minor PPF Account in her name, can I deposit 100,000 each in both the PPF Accounts every year. As he is a minor, her account will be clubbed in my Individual Account. So can I deposit 100,000 each in both accounts every financial year. I know that I can claim only 100,000 U/s. 80(C) in my Individual Account, but I would like to know whether I can deposit 100,000 each in both the PPF Accounts every year.

    Awaiting your valuable and haste reply at the earliest.
    – See more at: https://taxguru.in/income-tax/public-provident-fund-ppf-scheme-investment-limit-income-tax-benefit-features.html#comment-1211414

  41. rahul says:

    limit of deposit in minor a/c
    if a/c is open in the name of minor then deposit limit is father & son is not more than 150000 is correct or not
    example if father deposit rs 100000 in his self a/c then he can invest his minor son A/c rs 500000 means limit in both a/c is only 1500000 is correct or not

  42. Mithu Agarwalla says:

    As per the Financial Rule-2014-2015(Budget) the maximum amount deposit to PPF A/c are Rs.1,50,000, if I am deposit Rs.2,00,000 through RTGS in my PPF A/c then It is possible ( i.e the amount can be show in my Pass book )

  43. nirmala says:

    i was open my ppf ac in 2011 in pnb but they dint give any passbook, due to that region i cant pay any deposit .but i have e-generated receipt, now i want continue my ppf a/c what i do……tell me

  44. mrinal shinde says:

    Hi,
    My son is 2.3 yrs old. Can I open PPF account on his name? As,I am told that he minor should be atleast 3 yrs old to open PPF account on his name. Is that true?

  45. VISHAL DOSHI says:

    Dear sir,

    I am having an Individual PPF Account in my name in which I deposit Rs.100,000 every year and claim deduction of Tax U/s. 80(C). I am having a 6 years old Daughter for whom I would like to open a minor PPF Account and I will be her Natural Guardian in this minor account. I would firstly like to know that if I open a minor PPF Account in her name, can I deposit 100,000 each in both the PPF Accounts every year. As she is a minor, her account will be clubbed in my Individual Account. So can I deposit 100,000 each in both accounts every financial year. I know that I can claim only 100,000 U/s. 80(C) in my Individual Account, but I would like to know whether I can deposit 100,000 each in both the PPF Accounts every year.

    Awaiting your valuable and haste reply at the earliest.

    Vishal Doshi

  46. Kashyap Patel says:

    Regarding PPF for minors….
    I have been wanting to open a PPF account for my son who is almost 2 now. but when i approached the SBI bank, the manager said that the PPF for minor are no longer available. through some notification (probably in 2009 or 10) the same has been stopped. I knew this for HUF…but minors.
    then i discussed this with few financial advisers…and there was a difference in opinion – some said it is no longer possible to open while other said it could be.
    so what is the truth in this?
    i just found out that IDBI is opening PPF in name of minors.
    so what is the truth in all this????

  47. prashant says:

    for Exemption under section 80C which amount should be take.
    is balance of in PPF account or interest amount or amount which is deposited in the year 2013 – 14.

  48. Rasik dagli says:

    Dear Sirs,
    Please also note that amount lying at the credit of PPF Account can not be attached by any Tax Authority or even by Court.
    RASIK DAGLI

  49. Husaini says:

    Dear Sir,

    There is lot of confusion regarding total ppf investment limit including that of minor. Please clarify the same with proper references.
    In my case I already have ppf accounts in the name of my kid and myself.
    As I was not aware that one can contribute only a total amount of 1 lakh ( myself + my kid), I have exceeded the amount eg 1 lakh in my account and few thousands in my child’s account for past few years.Bank passbooks also show earned interests in both the accounts.
    Please let me know what should I do now.

  50. Anannya says:

    Dear Sir,
    Dear Sir,

    There is lot of confusion regarding total ppf investment limit including that of minor. Please clarify the same with proper references.
    In my case I already have ppf accounts in the name of my kid and myself.
    As I was not aware that one can contribute only a total amount of 1 lakh ( myself + my kid), I have exceeded the amount eg 1 lakh in my account and few thousands in my child’s account for past few years.Bank passbooks also show earned interests in both the accounts.
    Please let me know what should I do now.

    Thanks

  51. Hitesh Daka says:

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

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

    Ex.

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

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

    Intest of PPF is countable for IncomeTax Benefits ?

  52. Rajib says:

    Hi,

    I have opened a PPF a/c in 16th Sep’2012,So i got the interest only for 6 months.
    So,if i deposit the yearly amount with 5th Sept of every year,can i get the interest of the same month or it will the opening date for calculating the interest for every year.

    Waiting for your reply
    Thanks,
    Rajib

  53. Isha Single says:

    Hello,

    Regarding PPF scheme, I want to know if my husband will be entitled to get tax benefit in case he deposits money in my PPF account using his bank account cheques in place of me. Or he has to open another (separate) PPF account to avail the tax benefits.

    Please suggest.

    Regards,
    Isha

  54. gautam baghmar says:

    i was having ppf account in my son name on closer post office authority told that your son must present while collecting cheque whereas i was authorised to collect cheque whether they can insist account holder’s presence

  55. rajiv says:

    “–Let’s say you open an account for your minor child. You can deposit Rs 70,000 in your account and Rs 70,000 in your child’s account. In this case you can in my opinion take the maximum benefit of Rs. 1,00,000/- U/s. 80C. As Limit of Maximum Investment in a year of 70000/- is fixed by Public provident Fund Act not by Income Tax law.–”
    Could you please reconfirm the above mentioned statement if it true that you could invest more than 1.0 Lakh by opening an account in child name – I had the impression that maxu=imum investment in PPF could be 1.0 Lakh combining PPF accounts in your name or in name of your child/children.

  56. Nishok says:

    hi

    I have two ppf ac. 1st post office in 2011 & 2nd Sbi in 2013.
    I thought of transfer from post office Account to SBI, but post master is not accepting the new Accont Id given by SBI .

    how to transfer from PostOffice to SBI ?
    how to close Post office account ( they are not accepting) ?

    waiting for your reply.

    regards
    Nishok

  57. Neeraj Singhal says:

    Dear sir
    i have PPF account in SBI PGI Branch chandigargh, which was opened in 2005. but now it has been found that computer by mistake has taken the opening date 1998 and matured the account due to which i am suffering a lot. further type account is individual, but in CIF it is HUF, due to which branch is enable to extend it.
    Kindly suggest me what i will have to do regarding the correction of date and type of account.

    neeraj singhal

  58. Neeraj Singhal says:

    Dear sir
    i have PPF account in SBI PGI Branch chandigargh, which was opened in 2005. but now it has been found that computer by mistake has taken the opening date 1998 and matured the account due to which i am suffering a lot. further type account is individual, but in CIF it is HUF, due to which branch is enable to extend it.
    Kindly suggest me what i will have to do regarding the correction of date and type of account.

    neeraj sighal

  59. ASHOK KUMAR BAID says:

    DEAR SIR,
    I HAVE TRANSFER MY A/C FROM KOLKATA TO HYDERABAD IN THE MONTH OF JAN 2013.
    AT THE TIME OF CALCULATION OF INTEREST BANK HAD PAID ME LESS INTEREST OF RS.9000/-APP.
    ON VISIT TO THE BANK THEY STATED THAT IT IS GOVT A/C HENCE HE CANT HELP.
    CAN YOU PROVIDE ME THE HIGHER AUTHORITIES DETAILS TO TAKE UP THE MATTER AND GET MY SHORT INT CREDITED TO MY A/C.
    ASHOK KUMAR BAID

  60. sanjay yedke says:

    Sir,
    I had opened a ppf account on my daughters name when she was below 18 years of age & I have also a separate account on my name.Now my daughter is above 18 years & she is self employed,so my main query is how to approach the bank to claim the tax benefit on her name because she wants to handle this ppf account independently.so please guide me how to approach the bank.

  61. Kailash Agarwal says:

    Hello Sir,

    I forgot to deposit minimum amount of RS 500 in my (SBI) PPF account for financial year 2012-2013. If I pay amount with penalty then am I eligible to get tax benefit for financial year 2012-2013.

    Please guide me how should I approach bank in this situation.

    Thanks

  62. Tapan Mehta says:

    Hi,

    My PPF account matured when my status was resident & it was renewed with contribution. Subsequently (within a year) my status changed to NRI. What options do I have ? Can I continue with contributions into the account ? If I can continue, do I have an option to stop the contribution and close the account ? Appreciate help on this

  63. B B BANIK says:

    My present age is 65. and open a ppf account . Suppose i expired at the age of 72 .Can my nominee will get the ppf amount at that point or they have to wait for 15 years . please reply.

  64. Arin says:

    Dear Sir,

    There is lot of confusion regarding total ppf investment limit including that of minor. Please clarify the same with proper references.
    In my case I already have ppf accounts (with SBI) in the name of my kid and myself. Total contribution p.a. has been more than Rs. 100k for last few years. Bank passbooks also show earned interests in both the accounts.
    With arguments published on your site, it is in contradiction. Please cross-check the facts and clarify the situation for the benifit of all.

    Thanks

    A

  65. Ranjne says:

    Sir,

    I have deposited Rs 500 in PPF last year (29/02/12).As per my knowledge now interest rate is 8.8%. But yesterday (3/01/13 ) when I updated the Pass book they have shown Rs 4 instead of Rs 44 as interest amount .Can you please clarify how this is calculated .
    Thanks
    Ranjne

  66. sanyam jain says:

    I have opened a PPF account recently. Can my wife open one in her name and I deposit money into it. She is a house wife. Do not have any income.

  67. Novneet Jain says:

    https://taxguru.in/income-tax/public-provident-fund-ppf-scheme-investment-limit-income-tax-benefit-features.html
    Sir,
    Maintaining PPF a/c since last 18 years or so in State Bank Of India,Cloth Market Branch,Sir Hukam chand Marg,Indore
    In most of time I deposited cheque in the bank on 1st of the month but in most of cases they deposited the amount after 5th of the month and I always loose interest for the full amount.Where as in most of times the amount was debited to my bank on 3rd or 4th of the month but they never provided credit to my account.Many times I make complaints but nothing happened.Please guide what should I do.

  68. Shobhit says:

    hi

    I have two ppf ac. 1st post office in 2010 & 2nd Sbi in 2013. bank manager suggested me to open 2nd and said no problem in opening 2nd.
    will there be any legal issue? also can i close the later one?
    waiting for your reply

    thanks
    shobhit

  69. Vardhaman says:

    Hi,

    kindly let me know , is the invenstment ammount variable ?

    e.g. Suppose IF I invest 20,000/- Rs. for 1st 3 years, shall I incerase/decrease my investments in between.

  70. Rahul Jain says:

    Hi,

    I am planning to open PPF account in ICICI bank. If i submit 40,000 Rs. each year in PPF account then what total ammount i will get after completion of 15 Years?
    Is that ammount will be taxable? If yes, how much ammount i will get after tax deduction?

    As, discussed with ICICI bank PPF amount will be tax fully exempt. What is it mean?

  71. Dion says:

    Sir:

    Query: I have extended my PPF for a further 5 years, i.e it has completed 15 years,. I wish to withdraw 1 lac every year to pay off housing loan..is this permitted and is the withdrawal amount taxable ? (clubbed with taxable income?)

  72. Sandip Agarwal says:

    I have a question on point no. 17.
    I have my mother as a dependent on me(proof available). I deposit money in her PPF account. Have I the rights to get the rebate for the same, if total amount (her+mine) less than 1 Lac?

  73. santosh kanodia says:

    i have opened a ppf account in the name of my grandson(minor) can my son deposit 1 lac in his name and also 1 lac in the name of my grandson. i agree that he will get 80c benefit for 1 lac only. but can he deposit 1 lac in each account. also will he get interest in both the accounts.thanks

  74. Anjaiah says:

    If, account holder dies after 1 or 2 year after opening of the PPF account, Is it continued till 15 years or is there any assumption.

    Anjaiah

  75. Jitendra PateI says:

    Dear sir,

    I would like to know that what if i hold 2 PPF account.
    Actully i am holding a PPF account in Post and SBI and both are in my name. So Would you please advise how to react on this?

    Can i close 1 PPF account ?

    1St account will be going to mature in 2017.
    2nd will be going to mature in 2025.

    BR
    JP

  76. Lakshmi says:

    Hello, can u please clarify if I can open a PPF A/C here and deposit money that my husband sends from abroad. Is it allowed? This is not for tax saving but as a saving. Thank u!

  77. BS says:

    please clarify does total amount invested in ppf and epf is tax free or just the interest? can i get tax deduction for mine educational loan? can i get someones total tax calculation details?

  78. C. Venkatesh says:

    Dear Chinmay,

    The PPF deposit is Government of India Scheme offered by banks/post offices. Hence there is no difference between PPF deposits with one bank/post office to another. However, you can have only one PPF account at a time.

  79. Kapil Kumar says:

    hi!!

    Need your help.
    My mother got demised in the age of 62 and her PPF a/c has nominee quoted me (son) and my sister. Sister got married around 4 years ago and my mother forgot to remove my sister as nominee post her marriage. My sister is now in abroad and can not come until one more year where as i need to withdraw amount on prioirty (to settle some financial obligatoins). can affidavit will support her absense and enable me to get the money solely. is that possible? any other way around?

  80. Ananda says:

    I have started a ppf account at sbi from June 2012 @ Rs.6000/month.But I can not deposit the amount for the month of August 2012. Can I deposit the due amount on the next month for due month August 2012 (Rs.6000)+ Rs.6000/ for Sept.2012 together.

  81. Mitali Chatterjee says:

    I have got one extension and in 2010 was for the second extension for my PPF. I forgot to extend the same. I need advise to extend it. MY Tax planning will get haywire. Can I keep the account PPF though it is deactivated. I deposited 70000 in April 2012 and the same is being reflected in my passbook. What is the way to resolve this impasse and my PPF get activated. Thanks

  82. Mitali Chatterjee says:

    I have forgotten to extend my PPF for five years. Last was extended on 2110. I am told that the account will cease and can withdraw the money. I deposited Rs 70000 in April 2012. Can I get my PPF account activated. What is the rule? Withdrawing the amount will upset my tax planning. Please advise a way out. Mitali

  83. ASHISH SHAH says:

    Can HUF invest in PPF on behalf of its members, HUF doesn’t want any tax break on the same.

    Also can HUF pay LIC premium on behalf of its members

  84. ravikant says:

    sir
    regarding ppf we have deposited every year 1 lakh up to 15 years and after maturity 15 years total deposited amount & total Interest is tax free.or taxble

    let me know

    ravikant singh
    date-06/09/2012

  85. Satish Agarwal says:

    Each adult member in ourfamily has individual PPF accounts. In addition, we have now opened a PPF account in name of my minor grand son (under guardianship of my son). I deposit Rs 100,000 in my PPF account.
    In addition, can I deposit Rs 100,000 in my grand son’s PPF account also by cheque. I am aware that my 80C benefit is limited to Rs 100,000.
    Please advise.

  86. sundararajan says:

    You have to update the information, otherwise it is misleading

    “The maximum that could be deposited is Rs. 70,000 in a financial year.  The interest you will earn is 8% per annum. ”

    both these statements need correction

  87. Udit Chadha says:

    Dear Sir,
    I am planning to open a PPF .The amount which I deposit will help me in getting rebate from income tax but on maturity when i get back the money with interest,will the interest add under my income ,thereby I will have to pay income tax on that income.
    Thanks 
    Udit Chadha
    udit_chadha83@yahoo.co.in
    9311075624

  88. soumitra das says:

    I want to know the rate of interest on PPF a/c for F.Y.2011-12. Is their any changes made during F.Y.2011-12, please provide me interest details. I think my bank given me less int. upto 31.03.2012.

  89. Binayak Dwibedi says:

    i have PPF account open on October 2011. I deposited Rs. 1000/- for regular 03 months. Is my account working. May I deposit irregular amounts at any point of time.

  90. prasad says:

    i had ppf acount since last 12 year so i want to close the account if it is possible or i want to withdraw 40% amount it is possible or not

  91. Kapil says:

    Sir, i am 51 years old and paid rs 20,000 into a PPF account in 1992. I did not make any subsequent deposit. Can i get the money with interest back without paying the penalty on account of non deposit of yearly minimum as the account is more than 15 years old. 20 years actually.

    Thanks,

    Kapil Advani

  92. dattatreyahg says:

    SANDIPAN, REF your 16 june 2012 posting. Extn is NOT automatic. You have to apply for it in Form H, within prescribed time limit, specifying whether it is with or without subscription. Pl. check with your Bank manager,understand the implications, and act accordingly. Keep an approved copy of this safely for future reference.

  93. Ashwani Kumar Bhalla says:

    Dear Sir,
    I wish to open a PPF account in the name of my grand guardian as guardian. Her father  is alive. My request has been denied by PNB Gopi Nath Bazar with plea to open her PPF a/c through father. Please comment 

    With regards,

    AK Bhalla

  94. Suresh Awasthi Retd Sudpt says:

    Sir I have taken the agency of PPF where should I have send the format for application and what condition whould . Kindlt suggest me so that I have applied for that.

  95. mahender says:

    Hi,

    I have a PPF a/c with PNB at my home town but I stay in other city. My PPF a/c does not have online transfer facility. I hardly visit my hometown once in a year and find it very difficult to deposit money in PPF because of tight schedule during my visit to hometown and long line of depositors in PNB. My source of income is through ICICI bank. In view of this is it advisable to open an a/c with ICICI on my minor son’s name and deposite most of the annual contribution deposited in that a/c. I hope I can get tax benifin on total of 1 lac only. But can I get interest income on diposits of both a/c upto the limit of 2 lacs altogether. Also I am sick of that PNB a/c because it does not allow online trasfer of funds. Can you suggest me better options. Also kindly confirm if my understanding about whatever I have written here is correct. Thanks and regards.
    Mahender

  96. dheeraj vora says:

    after 13/5/05 if you open minor & huf a/c in ppf then interest is not payable. there is a circular for this. pls clarity

  97. harish suyal says:

    hi
    suppose if i deposit Rs 100000=00 per year in my PPF account , then how much amount , i can get after the maturity and will it be tax free?

  98. rakesh kumar pandey says:

    dear sir i open a ppf account in sbi but due to poor services of bank i cant maintain it even not a single transiction made by me in this account,now icici bank offer a ppf account.can i open a ppf account in icici bank? i not maintain my sbi ppf a/c can this affect my running maintained account

  99. PRAKASH PATIL says:

    I OPEND MY PPF ACCOUNT IN AUGUST 1997. 15 YEARS TO BE COMPLETING IN AUGUST 2012. IF I DEPOSITED RS. 70000.00 IN THE MONTH OF JUNE 2012, MAY I ELIGIBLE TO GET IT BENFIT UNDER 80CCC? SECONDLY AFTER COMPLETION OF 15 YEARS, IF I CLOSE THE ACCOUNT, MAY I GET IT BENEFIT FOR THIS FINANCIAL YEAR 2012-13.
    IF POSSIBLE PLEASE REPLY TO MY MAIL ID ( hero_lic @rediffmail.com)

  100. Rajeev Khare says:

    If my deposit of Rs. 30,000/- in PPF a/c exhausts the limit of 100,000 under 80C but I deposit 100,000/- in PPF, will the interest earned on the entire sum be tax free ? Is 50% withdrawl after 7th year tax free? Suppose I need some money at the end of 10th year of PPF and I keep on depositing more than 30,000/- ( it will suffice to use the limit of 100,000/-) till the end of 10th year, and then make premature withdrawl, will it not save tax on interset ? Your early response will be appreciated.

  101. Madhura says:

    I opened PPF account with ICICI Bank on 04 Feb 2012 with deposit of Rs.30000/-. I was expecting credit of 2 months’ interest on 31 March 2012. But the bank office said that interest is payable only after completion of 6 months from the date of opening the account and that the interest credited on 31 March 2013 shall include the ainterest payable for Feb & March 2012. Please advise me whether this is true. I did not find answer at http://www.indiapost.gov.in/POSBActs/PPFRules1968.pdf

  102. Devendra Aswal says:

    My wife has a PPF A/c and she is also a guardian for our two kid’s PPF A/c. I have been told by many people that she can deposit a maximum of Rs 1,00,000/- in all the three PPF A/c’s and not Rs 1,00,000/- in each account. Please clarify. I am sure many of us have this doubt. Please clarify. Thanks & Regards

  103. Suresh says:

    To my understanding, as per the latest guidelines(effective IFY 2011-12) upto 1 lakh rupees an individual can deposit in PPF during a financial year and get complete exemption, if he/she does not have any other savings.  As rightly pointed out by you, I strongly recommend this savings to every individual in India and certainly for those who are under tax bracket.

    Thank you.

    Suresh
    An online Hindi tutor
    sskay56@gmail.com
    91 0 9840643690

  104. Allan says:

    Hello,
    I am an NRI, Can i open a PPF account on my childs name(minor) where I will be the guardian and pay the annual subscription from my local savings account (not NRE or NRO account)

  105. Jyotsna says:

    Hi,

    I deposited money to my PPF account using online money transfer from my Father-In-Law’s account. The same is updated in my PPF account passbook, the photocopy of which I submitted to my company for claiming deductions under 80C.

    My office accounts department have returned back my claim saying that since money was transferred from Father-in-law’s account, it cannot be claimed by me, as he might have claimed for the same.

    Pls advise, if deduction under 80C for PPF can be claimed only for self, spouse or child this means that Father-in-Law cannot claim for the deposited amount. In this case should my company not allow me tax benefit i.e. deduction under 80C ? Is there any rule from Income Tax Department which clarifies who all can claim tax benefit for PPF ? Also has Income Tax department specified any rules/guidelines regarding online payment to PPF accounts ?

  106. CHETAN VORA says:

    i have two PPF ACCOUNT IN SBI .ONE ACCOUNT LIMIT IS OVER 15 YEAR. SECOND PPF ACCOUNT IS SINCE LAST 7 YEAR.WHAT IS RULES IF WE HAVE TWO A/C. WHAT IS PROCEDURE TO CLOSE SECOND A/C.WHEN I OPEN SECOND A/C I DONOT KNOW ANY RULES.I WANT WITHDRAW FIRST A/C MONEY. IF AS PER PAN CARD BANK FOUND TWO PPF A/C. ANY LEGAL ACTION TAKEN AGAINST ME OR BANK ADVISE TO STOP SECOND A/C.PL REPLY URGENT

  107. shobhit agarwal says:

    Hello,

    I have PPF account in SBI bank but don’t have saving account, now my question is how I can check my PPF account statement online, I do not want to open saving account in SBI.
    IS it possible ?

    Please Guide me

    Thanks in Advance 🙂

    Regards
    Shobhit Agarwal

  108. Edwin DSilva says:

    Dear Tax Guru,
    This query refers to pint 2.b in the article ‘Public Provident Fund (PPF) Invetmentlimit… etc. I opened a PPF A/c in March 2003 (also 3 PPF accounts were opened with my children and self as guardian Total invested annually was Rs 70000) while I was a NRI. The account was maintained regularly since then. Under the latest laws, I will cease to be a NRI. All three children are already Major and their accounts are now separate (individual). As my residence status will now change, what would happen to these PPF accounts? Will the interest earned on the accounts for the period that I was NRI be forfeited? Will I be penalised on all 4 accounts? Will the accounts now be considered invalid? or can the accounts just be operated as normal? – Your learned advice will be highly appreciated. Thanks in advance – Edwin

  109. TN Sivashankar says:

    My spouse has got a PPF account and she is un-employed. Is investments made in her PPF account can be counted for my IT exemption. May please clarify urgently.

    TN Sivashankar
    8754447731

  110. RC PANDE says:

    I have deposited Rs. one Lac in PPF. in fin.Year 2011-12. Will this whole amt. ( 1 Lac) will be the qualifying amt u/s 80-c for Tax purpose or it will only be 70,000/= as of last year?

  111. Puneet says:

    what amount i will get,if i deposit RS 1500 p.a in my ppf account after 15 years and if i will deposit RS 2000p.a then what is the amount i will get after the maturity period.

  112. Rajpal says:

    I wish to open PPF account on my son name. His date of birth is 30 Apr 1993 (above 18 years old ) Can I get tax rebate on my salary . I am a Haryana State Govt Employee.

  113. s puri says:

    i have a ppf account in my name.Can my wife deposit in my ppf a/c by cash or cheque and claim tax benefit in her return. please clarify.

    s.puri
    still waiting the ans.

  114. Bankim Bangawala says:

    PPF Account Opening Form “A” Para (iv) is reproduced below: I also declare that I shall adhere to the ceiling on deposits as provided for by Central Government from time to time, which is Rs. 100000 in a financial year at present, in each of the following types of PPF Account :- (a) Individual Self Account and Accounts on behalf of minors of whom I am the guardian, taken all the accounts together; (b) Omitted wef 13/05/2005; (c) Omitted wef 13/05/2005. In case, at the time the said declaration is found untru/false. no interest shall be payable to me/the subscriber on the amount of deposits found in excess of the prescribed limit. Limits of subscription Sec 3 (1) Any individual may, on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund (hereinafter referred to as the “Fund”) any amount not less than Rs. 500 and not more than Rs. 100000 in a year. Hence investment limit of Rs. 100000 is applicable for the account of individual as well as minors putting together all the accounts.

  115. Amarjeet Chatterjee says:

    If i opened a PPF account then can i deposit different amounts in a financial year,suppose i’ve deposit 500 1st month,1000 2nd month and the same as furthur on basis of my salary. can it will be possible.

  116. s puri says:

    i have a ppf account in my name.Can my wife deposit in my ppf a/c by cash or cheque and claim tax benefit in her return. please clarify.

    s.puri

  117. Amish Bhushan Goel says:

    I have deposited 7,000 each in my and in my two children’s account in one financial year. I came to know that the collective amount of the three should not have been more than 70,000. Please suggest what PPF office generally do in such cases.

  118. H G Dattatreya says:

    Thanks for your updated version on PPF d/d 26 jan 2012. It has answered one of my questions on extension of PPF a/c unambiguiously. Readers may see that. H G Dattatreya

  119. Hemant says:

    Point # 8 in this article states- “Let’s say you open an account for your minor child. You can deposit Rs 70,000 in your account and Rs 70,000 in your child’s account”. This is completely wrong. See- Point # 26 at www. statebankoftravancore.com/ppf.htm.
    Point # 26 is reproduced below which specifies that the overall limit one can contribute his self PPF account and minor’s PPF account collectively is Rs 1 lac. One cannot (should not) contribute above 1 lac collective in both the accounts.
    Point# 26-> “26) The ceiling on deposits as provided for by Central Government from time to time, which is Rs.1,00,000/- in a financial year at present, is both for individual self account and account(s) opened on behalf of minor(s) of whom he is the guardian, taken together.”

  120. Hemant says:

    I have self PPF account as well as minor’s PPF account for my daughter. Can I invest 1lac in my account and 1Lac in minor’s account? OR I can invest total 1 Lac only collectively in both the accounts? Your article says 2 Lacs (1 lac in each account, 70 k limit is raised to 1 lac since Dec 2011). Please see the excerpts from the PPF opening form:- “I also declare that I shall adhere to the ceiling on deposits as provided for by Central Government from time to time
    which is Rs.70,000/- in a financial year at present in each of the following types of Public Provident Fund Account.
    a) Individual Self Account and Account(s) on behalf of minor(s) of whom I am the guardian
    b) Hindi Undivided Family Account
    c) Association of Persons account as applicable in the State of Goa and Union Territories of Dadra and Nagar Haveli
    and Daman and Diu.”
    Need clarification for a). Thanks

  121. Girish says:

    Hi sir,

    I have opened a PPF account in SBI in DEC2010, When the Interest rate was 8% PA. But as per the new rule by Govt. of India the interest rate on PPF account got changed to 8.6% per annum wef DEC2011, So please let me know whether I will be eligiblle to be covered under this new interest rate.

    Regards

    Girish

  122. dattatreyahg says:

    It is not for nothing that people raise queries here. PPF Act / Rules have been amended a number of times.Even now, there are doubts in the minds of many. Some may have already suffered losses just because they have not been able to get proper advice at the right time. There is also the element of Sec80 C benefit that people have availed. Imagine yourself to be told one day that your a/c was closed long back or you were not eligible to extend the a/c beyond 15 + 5 years or you should not have opened the second a/c etc etc. Someone above said “It is so simple. Look up the Rules. You get the answers “. Sorry. To get an authentic copy of PPF Act / Rules with the latest amendment is itself a big task. Even people who are handling this desk in SBI / Post Office dont have such an amended copy. If you do get a copy,then there is the question of interpretations of the wordings(quite normal in Govt Rules / Regulations). That is why you have so many amendments. There are differences of opinion even among people who are handling this subject exclusively, on some of these issues–particularly regarding extension. Even an article (Page 14 )in BUSINESSLINE d/d 8 jan 2012 does not UNAMBIGUIOUSLY say that PPF a/c can be extended beyond 15+5 years.(I have raised a query on it ). . I am not an expert in this area ,but I have gone thro’ these hazzles. One Mgr said it can’t be extended after 15+5 years,while the next Mgr did it .But each time I was advised that extension is not automatic-but has to be on an application, within a prescribed time, in Form H which should be approved by Mgr. Under these circmstances, no wonder there are so many queries. Taxguru would be doing a great service to hapless PPF investors, if one more comprehensive and authentic article is generated from a knowledgeable source (from the horse’s mouth,as it were) and publish here. May be a Question /Answer platform ,if this is more useful. This can start with the Questions already in print here. Looking forward to a favourable response at the earliest. H G Dattatreya

  123. manu says:

    Kudos on such a perfect article…
    I want to know if the amount obtained after maturity of PPF account, or on premature withdrawal, taxable under the current prevailing law, and if this law changes will it affect the previous account holders….

    Please reply…
    Thanks in advance..
    Manu

  124. Kris says:

    Sir, I have opened PPF account in the year Aug 2010 and deposited Rs 500/- initially and deposited Rs 65,000/- in Dec 2010. In Apr 2011, I have got interest of Rs 1,413/- only. Can you please clarify?
    It seems we need to deposit PPF amount at the begining of the year (i.e. 1st April of every year ) to get the full interest?)

  125. Pramod Singh Mewari says:

    Sir,
    Joint PPF A/c hone par kay dono ko tax mai dudaction milegi. jab ki deposti es hi kar rha hai.
    nhi to joint PPF a/c ka profit kya hota hai.

  126. VARSHA PATIL says:

    My PPF A/C got matured in Mar 2010, & subsequently I renewed it for further period of 5 yrs. Now I need money ,Can I close my A/c? Please inform.

  127. Sameer Ghandhi says:

    Hi,
    My case is very typical.
    I opened one PPF account in Dehradoon in Mar’2005. I deposited around 8000.00 Rs at the time of opening of PPF account. After this I never tracked this account and I never deposited any ammount in this acct. Then I moved to Noida.
    I was not aware of the Rule that an an individual cannot maintain more than one PPF account.
    I opened one more PPF account in Noida in Jan’2010 and now am regularly depositing amount in this new account and earning interest also.(Tootal deposited amount is around 1.5 Lakh as on date in new PPF acct).

    Now can you suggest me what shall I do?
    As per rule if it comes to PPF knowledge that I have 2 PPF accounts they will forciblily closed my second account and they will revert all ineters.

    1. Can I apply transfer of my old PPF account to my new PPF acount.
    2. If not then what is best possible soln.

    Thanks in advance for your advice.

  128. Vikash Kumar says:

    Sir, I have a PPF account but not able to utilize it to get tax exemption since already have LIC and PF which is exceeding 1 LAKH cut off. Now I want to transfer PPF account to my wife’s name so that atleast she can take tax exemption benefit. Is It Possible if yes what is the procedure?

  129. Gourav Sahni says:

    Sir, I have a running PPF account in post office for last 6 yrs and I am unable to make payments at post office which is why i put only small amount to have it running. Need your help in knowing if I can have my PPF account from Post office migrated to SBI. If yes then please let me know how should I proceed.
    Rgds,

  130. D M Revankar says:

    Respected Sir, I have deposited Rs. 60000+40000-Total+100000 in PPF,Financial year 2005-2006 now today 23.12.2011, letter received from post office that you withdraw the Rs. 30000, which excess & irregular money and not to entitled interest theron. My question is whether I get inerest or what to do for interest for the period of 2005 to 2011.

  131. Chandrasekhar.A says:

    Hi, i have a question with me that one of my co employee said that if we maintain continuous 10 years PF, after our retairement age we will get pension. Please some one clarify my question that what is the possibilites of my question.

  132. leena says:

    Hello,

    I would like to now which month we should invest in PPF to get the maximum interest ?

    For ex : If I want to pay 50000 per anum in ppf . Shall I deposit that amount in month of April [ which is the start of financial year ] to get the maximum interest?

  133. Sachin says:

    Dear sir,

    I have self(my name) PPF account and I am depositing Rs 70000/= PA. Now i am opening my wife’s(dependent on me and HOUSE WIFE) new PPF account and want to deposit Approx 30000/= to 40000/= PA.

    I want to know can i get income Tax rebate of Rs 100000/=(as per govt rule) to showing both PPF Amount sum(Self Account sum and Wife’s Account Sum == 100000) under sec 80C. As i am not interested to invest amount on Insurance policies.

    Please tell me clear can i get Tax benefit in Sum amount of Both PPF Accounts.

    Sachin

  134. Salotia says:

    Hi All,

    If I invest 10000 p.a, than what should be the total amt I would be recieving after 15 years.

    And if I invest 70000 p.a, than what should be the the total amt I would be recieving after 15 years.

    Guys please help.

    1. John says:

      Hi Salotia,

      I just did a rough calc of the ROI for 20 year period for a sum of 25k. I hope you will find this helpful…

      Year Amount Invested Acct Balance Rate Interest ROI
      Year 1 25,000.00 25,000.00 8% 2,000.00 27,000.00
      Year 2 25,000.00 52,000.00 8% 4,160.00 56,160.00
      Year 3 25,000.00 81,160.00 8% 6,492.80 87,652.80
      Year 4 25,000.00 112,652.80 8% 9,012.22 121,665.02
      Year 5 25,000.00 146,665.02 8% 11,733.20 158,398.23
      Year 6 25,000.00 183,398.23 8% 14,671.86 198,070.08
      Year 7 25,000.00 223,070.08 8% 17,845.61 240,915.69
      Year 8 25,000.00 265,915.69 8% 21,273.26 287,188.95
      Year 9 25,000.00 312,188.95 8% 24,975.12 337,164.06
      Year 10 25,000.00 362,164.06 8% 28,973.12 391,137.19
      Year 11 25,000.00 416,137.19 8% 33,290.97 449,428.16
      Year 12 25,000.00 474,428.16 8% 37,954.25 512,382.41
      Year 13 25,000.00 537,382.41 8% 42,990.59 580,373.01
      Year 14 25,000.00 605,373.01 8% 48,429.84 653,802.85
      Year 15 25,000.00 678,802.85 8% 54,304.23 733,107.08
      Year 16 25,000.00 758,107.08 8% 60,648.57 818,755.64
      Year 17 25,000.00 843,755.64 8% 67,500.45 911,256.09
      Year 18 25,000.00 936,256.09 8% 74,900.49 1,011,156.58
      Year 19 25,000.00 1,036,156.58 8% 82,892.53 1,119,049.11
      Year 20 25,000.00 1,144,049.11 8% 91,523.93 1,235,573.04

  135. Girija Shanker Upadhyay says:

    Tax guru;
    I have ppf account in name of my self. Can I deposit maximum limit( supposed to be 1 lakh from dec 2011) to account ?

      1. Dr Vineet Marwaha says:

        Respected sir, in continuation of what u said above. I want to ask if the tax benefit would also be upto 1 lac or will remain at 70K.

  136. Gopal says:

    Sir,

    I am aged 58, have my PPF a/c with SBI for 25 years which I would like to withdraw in April 2011 to augment my son’s educational needs.

    I will be continued to be gainfully employed for couple of more years. Can I open a PPF a/c in my son’s name who is a major and student ?

    If opened, can I avail tax benefit in my name…?

  137. Partha says:

    I am having a PPF account since 2004. However, I could not deposit any money in my PPF account for the last 2 years. As I read, I understand I have to deposit a minimum of Rs 500. Now, is my PPF discontinued? Am I still earning the interest on my balance in the PPF? What do I need to do to restore the account?

  138. navneet sharma says:

    Tax guru;
    can i open ppf account in name of my self and in name of my minor children(two in no)? In this case Can I deposit maximum limit( supposed to be 1 lakh from dec 2011) to each account( Mine account and my other two children account)? can I get the interest on all three account? Will that interest will be free from any tax on maturity?

    1. Ranjan D says:

      can i open ppf account in name of my self and in name of my minor children(two in no)? In this case Can I deposit maximum limit( supposed to be 1 lakh from dec 2011) to each account( Mine account and my other two children account)? can I get the interest on all three account? Will that interest will be free from any tax on maturity?

  139. Manoj says:

    Tax guru;
    can i open ppf account in name of my self and in name of my minor children(two in no)? In this case Can I deposit maximum limit( supposed to be 1 lakh from dec 2011) to each account( Mine account and my other two children account)? can I get the interest on all three account? Will that interest will be free from any tax on maturity?

  140. Vikas M says:

    Dear Tax Guru,

    I have a PPF account in my name and have deposited Rs70,000/- for year 2011-12. Can I open another PPF account (as guardian) under my daughter’s (minor) name and deposit another 70,000/- in this PPF account?

    Will I be earning interest on both (mine and my daughter’s – minor) these PPF accounts?

    Regards,
    Vikas M

    1. Paresh Bhayani says:

      Yes . U can deposit upto the limit defined from time to time for the FY by central govt.Intrest will be deposited @ 8.6 % in respective account , for the entire FY , on 31 st March.

  141. Vinay says:

    Sir,

    If I Invest 5000 Rs. In PPF I will got 1759497 Rs. after 15 years.but when I invest same amount on LIC Jeevan saral 5000 Rs. per month for 15 years I will got 2221984 Rs. The diffrence amount is 462487 Rs. so i want what are the benefits of investing in PPF. and which is better option for investing?

    Vinay Gupta

    1. vishal says:

      firstly the PPF return would be Rs.18.25+……
      secondly the return on LIC jeevan saral is not fixed…..the figures u hv got is a myth….LIC will never give u a gurantee on the return……whereas PPF returns are fixed…..

      the only advantage of insurance is the risk cover…….so u can mix Term cover plans (LIC) + PPF…….to get both protection & return

  142. NILESH says:

    SIR, IF I INVEST 70,000.00 PA IN PPF FOR 15 YRS WHICH WILL BE 10,50,000.00 RETURN I WILL BE GETTING APPX. 17,50,000.00. AND IF INVEST 10,50,000 FOR 10 YEARS IN IDBI BANK FD @ 9.50% I WOULD BE GETTING MUCH MORE HIGHER RETURN. THEN CAN U PLS EXPLAIN ME WHY ONE SHOULD GO FOR PPF ?

    1. MOHAN says:

      on the interest earned you deduct the tax as this will be taxable in your hand. The PPF interest will be tax free hence it will work out more.

      hope this will suffice.

    2. Priyank says:

      Hi,
      Just wanted to throw some light for the sake of all reading this.
      For investing in any FD you are assuming that all of the amount (here 10,50,000) is available at the start of the Investment; while for PPF 70K is required at the start of financial year(or it can be paid in installments).
      Yield after 15 Years = 20,50,000 if 70K deposited each year at the rate of 8%
      Obviously this will Increase when 8% rate is increased by Govt and limit increased to 1L p.a.
      For the sake of comparision PPF can be compared to a recurring deposit where if 70K is invested p.a. at the start of financial year ar the rate of 9.5% will yield 19,80,000 at the end of 15 years after a tax deduction of 20% every year. I am not sure if such Recurring deposit is available and have any upper cap on investment.

      Now lets see the benefit of PPF
      1. If you dont have enough liquidity or are going through financial trouble you can get away by investing just Rs 500 in a year in PPF, BUT CAUTION: that this will hit the final value of the yield and will hit more if you are investing less in initial few years of PPF tenure.
      2. You can extend the PPF in blocks of 5 years after the initial 15 years by submiting a form well in advance i.e. by 14.5 years and ensuring that change is done. WHAT’s the benefit – The cumulative interest earned will be very high in the last years or as the extension is done in the extended years and all of it is Tax free from the begining.

      Conclusion: If you have lot of money initially that go head with RD/FD from nationalised banks , but if you know that you will have limited funds to invest like 70K to 1L p.a. then PPF is the probably the best Instrument out there.

      One omore important thing to note here is to distinguish PPF from Investment. PPF is supposed to be used to AID you in retirement planning and should not be considered as investment. Start early and try to put it as much amount every year as possible in April itself to earn maximum benefit, extend it till you retire in blocks of 5 years.

  143. R P PANCHAL says:

    Recent news paper statement the PPF limit in the bank is increased from 70, 000 to 1 laksh (One Lakh). Are you following or not, if not when it will be implimented. Kindly intimate as early as possible.

  144. Sachin Mane says:

    Sir,
    I want to open a PPF account in the name of my daughter who is 9 years old. I approached the SBI Aundh, Pune branch. Along with other documents, I had submitted my PAN card copy. However, they are insisting me to submit the PAN card of my daughter who is a minor (Minor PAN Card). If I submit the PAN card of my daughter, will i get the income tax benefit. Is it necessary to submit the PAN card of my daughter. Please guide me.

  145. Madneshwar Thakur says:

    R/Sir,
    I got a massage fron news that we can deposits upto Rs 100000/= in my PPF a/c.
    I would like to know that from which month we can deposits Rs. 100000/= (one lac.)

    With regards.

    M.Thakur

  146. pavan says:

    Sir,

    I started investing in PPF since january 2011 in the following installments,

    7 months x 5000 = 35000
    5 months x 7000 = 35000

    so total of 70000, while opening account in SBI i declared it as monthly investment of 5000,but later on i increased it to 70K/anum, i have one doubt, on this amount i get same annual interest OR will i get more if i invest more amount at the beginning of year say suppose 70000 at a time?

    kindly reply,

    rgds,
    pavan

    1. Paresh Bhayani says:

      Intrest is calculated at the end of year . If u doposit entire 70000/= before 5 th April , u will get more intrest than .At the earliear intrest rate of 8 % , the difference would have been Rs 233 & at current new rate of 8.6 % is Rs 251

  147. Nirav says:

    Recent news paper statement the PPF limit in the bank is increased from 70, 000 to 1 laksh (One Lakh). Are you following or not, if not when it will be implimented. Kindly intimate as early as possible.

  148. Dr/ ramaraju sita rama anjaneyulu says:

    Recent news paper statement i.e. gazzet equal, statting that the PPF limit in the bank is increased from 70, 000 to 1 laksh (One Lakh). Are you following or not, if not when it will be implimented. Kindly intimate as early as possible.

    (DR. R.S.R. Anjaneyulu)
    BHEL R&D Branch
    Account Holder. A.c No.10202156488 *Saving.

  149. sameer gupta says:

    I have one query, that my wife have a ppf account in her name, can i deposit the amount in her account from my income & take the benifet of section 80 c for my income tax return.

    sameer gupta

    1. trupti says:

      hello sir,
      i want to ask that after investing can i withdraw money after 3 0r 4 yr.if i will pay 15,000 for month after 3 or 4 yr how much money i will get.and after 15 yr how much money i will get.

  150. Swaroop. M. J. says:

    Hai Sir,
    I just wanted to know the maximum limit that can be deposited in a financial year in PPF a/c. It is mentioned in your article that it is 70,000/=. But I heard that the limit is raised to 1,00,000/= from this financial year, is it true?

  151. S.Kannan says:

    Pl. refer to the discussion on PPF account in minor’s name appeared in the ‘ The Hindu’dt 26/11/2011, under the heading ‘tax forum- questions and answers’. It is referred to in the question that as per clarification dt march 29 2010 of RBI, the deposits made in the names of 2 minors (rs. 70,000 + 70,000) were refunded to the major account holder, as the total contribution has exceeded the limit of rs. 70000 made by the major account holder himself.
    But in para 8 of “features of PPF scheme”, you have mentioned that rs. 70,000 can be remitted in the name of the individual and another rs.70000 in the name of the minor, but limiting the income tax benefit to the maximum of rs.100000 under 80c. This explaination is contradictory to RBI’s clarification dt 29th march 2010.
    Kindly explain the correct position, as it stands now and also mail a copy of RBI’s clarification

  152. Mehta says:

    My father(sr.citizen) have PPF a/c. since year 2000 and me as Nominee.
    My father’s HUF also have ppf a/c. and me as Nominee.
    He is expired a couple of months ago. What do i need to claim these account’s proceeds? Is it advisable to transfer these proceeds in my ppf a/c? or in sb ac?
    would it earn same exempted interest if the transfer is done in my ppf a/c?
    I and my children also have ppf a/c in the same bank since 2000.
    The ac were opened when they were minors, now they are majors do we need to intimate bank to make change from minor to major? or they do automatically?
    Do major children get same tax benefit on the interest earned on their balance in ppf?
    -Mehta

  153. Varun Karasia says:

    Sir,
    I am in my last year of my PPF a/c. If i withdarw Total Amount from my PPF account Will i get interest that is to be accrued till date.?

  154. Mukesh Kumar says:

    Dear Sir,

    My son’s ppf account is already due, however he lives abroad and has no intentions of coming to India. He does not have any pan card or bank accounts in India. I am a senior citizen and would like to know how I can close his account. His account does not have a nominee either.

    Please note that it was I who kept the account running all these yeara. My son does not support me financially.

  155. Ramachandra Reddy says:

    I want to deposit an amount of Rs.5000/- in PPF account during 2011-12. During 2012-13, I want deposit Rs.20000/-. During 2013-14, I want to deposit Rs.10000/- Can I do so or I have to deposit equal amount in each of the year throughout 15 years period.

    1. Atul says:

      You need to deposit a minimum amount of 500 rupees every financial year. Any amount over and above this would be at your will. You can change the amount every year, i.e. 10,000 in 1st year, 20,000 in 2nd year, 5,000 in 3rd year. You can do all such transactions with a upper cap.

  156. Ramachandra Reddy says:

    suppose I am liable for payment of income tax of Rs.10000/- during the financial year 2010-11. Instead of paying tax, I wanted to deposit Rs10000/- in Public Provident Fund. My query is, can I do so and get exemption from payment of Income Tax of Rs.10000/- for the financial year 2010-11.

    1. Atul says:

      You need to deposit a minimum amount of 500 rupees every financial year. Any amount over and above this would be at your will. You can change the amount every year, i.e. 10,000 in 1st year, 20,000 in 2nd year, 5,000 in 3rd year. You can do all such transactions with a upper cap of 70,000.

  157. Ramachandra Reddy says:

    suppose I am liable for payment of income tax of Rs.10000/- during the financial year 2010-11. Instead of paying tax, I wanted to deposit Rs10000/- in Public Provident Fund. My query is, can I do so and get exemption from payment of Income Tax of Rs.10000/- fot year 2011-11.

    1. Archan says:

      You can deposite to the PPF account, but you will still be liable to pay tax for your remaining taxable income. Means your deposite of Rs. 10000 will save your tax by Rs. 1000 (10% tax slab), Rs. 2000 (20% tax slab) or Rs. 3000 (30% tax slab), remaining tax has to be paid.

  158. Rajendran says:

    A PPF ACCOUNT HAS BEEN OPENED IN HUF NAME IN 2006. NOW BANK OBJECTS AND CLOSED WITHOUTNINTEREST. INTEREST IS LOST. CAN I CHANGE TO PERSONAL NAME.

  159. Raj says:

    Can a nominee continue the PPF account without any further deposits after the death of the subscriber? Will such an account continue to earn interest till final claim and closure? Is there any time limit for nominee to close the account and make the claim?

  160. resh says:

    is it better to deposit PPF amounts as monthly installments? or all at one go-in big sums? And pls let me know if depositing before certain date is better for interest calculation. When does interest get credited?

  161. Dheeraj says:

    Dear Sir,
    i have opened PPF A/C threw IDBI bank. It does not provide online view facility such as SBI. can I transfer my PPF A/C from IDBI to MY SBI account.

  162. Mangesh Hande says:

    Dear Sir,
    I have an account with PPF from last 10 years. Every Year I am depositing apx 40,000 to 60,000 in my PPF account. Now I have opened an account with my child name as Minor & Natuarl Guardian. Can I get Interest on both the accounts ? Pl advise.

  163. vaishali says:

    Dear Sir,

    Can I invest in names on my minor children form the funds of my HUF?? What would be the implications u/s. 80C of the Income Tax Act.

  164. Uma says:

    Hi,
    What is the difference between opening a PPF A/C in SBI branch and in a post office? Which provides better service if we encounter problems like transfer, closure, etc. In my opinion none of the government offices provides good service to its customers.

    Rgds,
    Uma

    1. Jugal says:

      Hi Uma,

      PPF with SBI is very good option . All service under one counter is provided in all branches of SBI . Post office is very slow and time consumable idea .

      1. Parikshit says:

        Further o this in SBI online transections can bemade for deposits and no physicalpresence is required in the post office.Whereas, in post office, we are supposed to deposit manually (either self or some agent).

        Online system of deposit makes the PF deposit in SBI very handy.

  165. Ashutosh says:

    Dear Sir,

    I was associated with one NGO. As per an Appointment Letter, they are suppose to open PPf Account and contribute towards it. They are actually cutting the PPF amount from my salary, but they have not published my PPF account no. Can you help me how can i cliam this amount. If possible can you please provide me details of person whom i can contact.

    If this NGO is fraudulent then what can be my next plan of action.

    1. resh says:

      just threaten to sue them. First write to them politely asking for ur PPF details. If they refuse to give u any, just send them a lawyer notice they’ll do it all for you in a minute.

  166. Somnath Sharma says:

    Sir
    I want to know that I have invested some amt. in PPF last year and I got Rs 1000 as interest. Do I need to show that interest as source of other income in my ITR-1 i.ereturn filling form.

  167. Abidali says:

    Dear Sir,
    I would like to know, if i have deposited 70000 at once in my PPF account at SBI in the month of Jan 2010, will i be entitled to get full 8% interest on the year of 2010-2011 at April 2011.

    regards,

    abidali

    1. Parikshit says:

      Yes, since the interest has to be compounded anually for the financial year in question, gross deposit for the financial year in subject shall be qualifying for interest after 31st march (financial closing).

      Best option is to raise a FDR, to ensure its maturity by 15th Mar and to transfer the saving of FDR to PPF a/c.

      This shall ensure some interest on the savings along with one time financial load in March for deposit to PPF.

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