Public Provident Fund: How to revive a discontinued PPF account
Public Provident Fund: A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually in PPF. If the minimum amount is not deposited, your account is closed.
Public Provident Fund: Public Provident Fund (PPF) is one of the most popular savings schemes in India. The PPF scheme matures in 15 years. PPF provides tax exemption as it comes under the EEE (exempt-exempt-exempt) tax status. With a PPF investment, the interest earned is tax-exempt under Section 80C of the Income Tax Act, and proceeds received at maturity are also tax free. At present, interest in PPF is 7.1 per cent.
A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually in PPF. If the minimum amount is not deposited, your account is closed. If your PPF account has also been closed and you want to start it again, then know the method here-
Public Provident Fund: How to revive a discontinued account
A discontinued PPF account can be revived before maturity. For this, the depositor will have to go to the post office or the bank branch with the account. Submit the written application to reopen the PPF account. Also, a minimum default fee of Rs 500 plus Rs 50 has to be deposited every year.
Suppose your account has been closed for three years, you will have to deposit at least Rs 1500 and a default fee of Rs 150 for three years. After this, the account will be continued again.
With the discontinued account, you will not be eligible for loans and withdrawals until the account is revived by making a payment of penalty fees and minimum contributions.
Public Provident Fund: Eligibility criteria for investing in PPF
- Indian residents can open a PPF account.
- Non-resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible to open a PPF account.
- Individuals can open only one PPF account in their name.
- The account of a minor can be opened by their parent/legal guardian
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Public Provident Fund: List of documents required for opening a PPF account
Proof of Identity: PAN card, Aadhaar card, passport, or voter ID.
Proof of Address: Aadhaar card, passport, utility bills, or rental agreement.
The account opening form.
Public Provident Fund: Benefits of PPF
- The first advantage of PPF is that any Indian citizen except NRIs can avail the benefit of this scheme.
- It also has the advantage of flexibility regarding investment. In this, a minimum of Rs 500 and a maximum of Rs 1.50 lakh can be deposited.
- You can get a loan up to 25 per cent of the amount deposited on PPF between the third financial year and the sixth financial year of account opening.
- The tax benefit is available on PPF under Section 80C of the Income Tax Act. The maturity amount is also tax-free.
- PPF is managed directly by the central government.
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