Can I maintain more than 1 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.
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.
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.
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. 1,00,000 per annum.
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.
What is the Interest earned in Public
Provident Fund (PPF) account?
The current rate of interest on Public Provident Fund (PPF) is 8.8%, which
is compounded annually .
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.
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 H within one year from the date of
maturity.
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.
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.
Can I avail of Loan facility on my Public
Provident Fund (PPF) investment?
Customers can avail of the loan facility between
third financial year to sixth financial year ie. from third financial year upto
end of fifth financial year.
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.
Role of another Bank Branch:
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.
Can I withdraw
funds from my Public Provident Fund (PPF) Account?
Anytime after the expiry of 5 years from the end
of the financial year in which initial subscription was made, a subscriber may
withdraw 50% of the balance to his credit at the end of 4th year immediately
preceding the year of withdrawal or amount at the preceding year which ever is
lower. However, not more than one withdrawal is permitted in one financial
year.Source Tax Guru
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