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PPF SCHEME DETAILS IN TELUGU - PPF TAX SAVING SCHEME

 PPF SCHEME DETAILS IN TELUGU - PPF TAX SAVING SCHEME

పబ్లిక్ ప్రావిడెంట్ ఫండ్ ఖాతా వేతన జీవులకే కాకుండా వేతనాలు పొందని వారికి కూడా పబ్లిక్ ప్రావిడెంట్ ఫండ్ (పీపీఎఫ్) మంచి పెట్టుబడి మార్గం గా చెప్పవచ్చు. ఇది దీర్ఘకాలికమైనది. ఇందులో పెట్టుబడిపై ఆదాయ పన్ను చట్టంలోని 80 సి కింద పన్ను మినహాయింపు పొందడానికి అవకాశం ఉంటుంది. గరిష్టంగా పన్ను మినహాయింపు రూ. 1.50 లక్షలు. పీపీఎఫ్ లాకిన్ పీరియడు 15 సంవత్సరాలు. అవసరం అనుకుంటే దీన్ని మరో ఐదేళ్లు పొడిగించుకోవచ్చు. ఈ ఖాతాను తెరిచినా ఐదేళ్ల తర్వాత ఖాతాలో సొమ్ములో కొంత మొత్తాన్ని అవసరమనుకుంటే ఉపసంహరించుకునే అవకాశము ఉంటుంది. పీపీఎఫ్ మెచ్యురిటీ తర్వాత వచ్చే సొమ్ముపైన కూడా పన్ను మినహాయింపు ఉంటుంది. పీపీఎఫ్ పై రుణం పొందే అవకాశం కూడా ఉంటుంది. పీపీఎఫ్ పై ఖాతాపై ప్రభుత్వం వడ్డీ చెల్లిస్తుంది. ప్రతి మూడు నెలలకు ఒకసారి ఈ వడ్డీ రేటును సవరిస్తుంటారు. 

 PPF లేదా పబ్లిక్ ప్రావిడెంట్ ఫండ్ అనేది ఉద్యోగులకు పదవీ విరమణ తర్వాత పెద్ద మొత్తంలో ఒకేసారి నిధి తీసుకోవడానికి ఉపయోగపడే స్కీం. ప్రతి ఏడాది తమ సంపాదనలో కొంత మొత్తాన్ని పీపీఎఫ్ కోసం కేటాయించాలి. పీపీఎఫ్ స్కీంలో చేరితే పెట్టుబడి మొత్తం పైన వడ్డీ రాబడి ఉంటుంది. అలాగే పన్ను ప్రయోజనాలు ఉంటాయి.

పీపీఎఫ్ అకౌంట్ అనేది చాలా పాపులర్ దీర్ఘకాల ఇన్వెస్ట్‌మెంట్ ఆప్షన్. ఇందులో ఇన్వెస్ట్‌మెంట్లకు కేంద్ర ప్రభుత్వ హామీ ఉంటుంది. కనీసం రూ.500 నుంచి ఇన్వెస్ట్ చేయవచ్చు. ఒక ఆర్థిక సంవత్సరంలో గరిష్టంగా రూ.1.5 లక్షల వరకు ఇన్వెస్ట్ చేసే అవకాశం ఉంది.

పీపీఎఫ్ పథకం ద్వారా EEE పన్ను లాభాలు లభిస్తాయని ఈ పథకం గురించి చెబుతారు. అంటే పెట్టుబడి పెట్టినప్పుడు, పెట్టుబడికి వడ్డీ పొందినప్పుడు, మెచ్యూరిటీ సమయంలో వచ్చిన డబ్బుకు మూడు సందర్భాల్లో పన్ను మినహాయింపు లభిస్తుంది. ఈ పథకంలో పెట్టుబడిగా పెట్టే ప్రతీ రూపాయికి కేంద్ర ప్రభుత్వమే గ్యారెంటీ ఇస్తుంది. అందుకే రిస్క్ లేకుండా మంచి వడ్డీ పొందాలనుకునేవాళ్లు పీపీఎప్ అకౌంట్లల్లో ఇన్వెస్ట్ చేస్తుంటారు. పన్ను లాభాలు పొందుతూ ఉంటారు.

  • ఓ వ్యక్తి తన పేరు మీద లేదా మైనర్ పేరు మీద ఈ అకౌంట్ తీసుకోవచ్చు. నెలనెలా జమ చేయొచ్చు లేదా ఒకేసారి జమ చేయచ్చు.  
  • వడ్డీ లెక్కింపు: ప్రతీ నెల 5వ తేదీ లోపే పీపీఎఫ్ వాయిదా జమ చేయాలని చెబుతుంటారు. ఇందుకు కారణం వడ్డీ లెక్కింపు జరిగేది ప్రతీ నెల 5వ తేదీన. ఆ రోజు లోపు వాయిదా చెల్లిస్తే వడ్డీ ఎక్కువ పొందొచ్చు. లంప్ సమ్ ఎంచుకునేవాళ్లు ఏప్రిల్ 5 లోపు వాయిదా చెల్లించాలి.
  • అర్హత: 

  • భారతదేశంలో నివసిస్తున్నవాళ్లు మాత్రమే పీపీఎఫ్ అకౌంట్ ఓపెన్ చేయొచ్చు. మైనర్ పేరున సంరక్షకులు అకౌంట్ తెరవచ్చు. అమ్మమ్మ, నాన్నమ్మ, తాత తమ మనవడు, మనవరాలి పేరు మీద పీపీఎఫ్ అకౌంట్ ఓపెన్ చేయలేరు. ఒకవేళ పిల్లల తల్లిదండ్రులు మరణిస్తే అనుమతిస్తారు
  • పెనాల్టీ: 

  • పీపీఎఫ్ అకౌంట్‌లో ఏడాదికి కనీసం రూ.500 అయినా జమ చేయాలి. లేకపోతే పీపీఎఫ్ అకౌంట్ ఇన్‌యాక్టీవ్ అవుతుంది. అకౌంట్‌ను మళ్లీ యాక్టీవ్ చేయాలంటే ఏడాదికి రూ.50 చొప్పున జరిమానా చెల్లించాలి. అందుకే గడువు లోగా కనీసం రూ.500 డిపాజిట్ చేయాలి. అకౌంట్ ఆపేస్తే పాక్షికంగా విత్‌డ్రా చేయడం లేదా లోన్ తీసుకోవడం సాధ్యం కాదు.
  • విత్‌డ్రా: 

  • పీపీఎఫ్ అకౌంట్ లాక్ ఇన్ పీరియడ్ 15 ఏళ్లు. జమ చేసిన మొత్తంలో పాక్షికంగా విత్‌డ్రా చేసుకోవచ్చు. లేదా రుణం తీసుకోవచ్చు. అయితే ఎన్నేళ్లుగా పొదుపు చేస్తున్నారన్నదానిపై ఇది ఆధారపడి ఉంటుంది. పథకానికి ఉన్న వడ్డీ రేటు కన్నా 2 శాతం ఎక్కువ రుణంపై వడ్డీ ఉంటుంది. ఏడేళ్లు దాటిందంటే విత్‌డ్రా చేసుకోవడానికి అర్హత లభిస్తుంది. అప్పుడు లోన్ తీసుకోవడం సాధ్యం కాదు. 
  • ప్రీమెచ్యూర్ క్లోజర్: పీపీఎఫ్ అకౌంట్‌ను కొన్ని పరిస్థితుల్లో మెచ్యూరిటీ కంటే ముందే క్లోజ్ చేసేందుకు అనుమతి ఉంది. ఇందుకోసం కనీసం ఐదేళ్లైనా పొదుపు చేయాలి.
  • మెచ్యూరిటీ తేదీ: పీపీఎఫ్‌ అకౌంట్ 15 ఏళ్ల లాక్-ఇన్ పీరియడ్ ఉంటుంది. అయితే మెచ్యూరిటీ తేదీకి అకౌంట్ ఓపెన్ చేసిన తేదీకి 15 ఏళ్లు అని కాదు అర్థం. ఆర్థిక సంవత్సరంపైన ఆధారపడి ఉంటుంది. ఉదాహరణకు మీరు 2019-20 ఆర్థిక సంవత్సరంలో ఎప్పుడు పీపీఎఫ్ అకౌంట్‌ తెరిచినా 2020 మార్చి 31 నుంచి లాక్-ఇన్ పీరియడ్ లెక్కిస్తారు. అంటే ఈ లెక్కన మెచ్యూరిటీ తేదీ 2035 ఏప్రిల్ 1న ఉంటుంది.
  • పన్ను: పెట్టుబడి, పెట్టుబడిపై ఆర్జించిన వడ్డీ, మెచ్యూరిటీ ద్వారా వచ్చిన మొత్తంపై పన్ను మినహాయింపు లభిస్తుంది. అంటే పీపీఎఫ్ అకౌంట్‌లో జమ చేస్తే ఒక్క రూపాయి కూడా పన్ను చెల్లించాల్సిన అవసరం లేదు.
  • నామినేషన్: పీపీఎఫ్ అకౌంట్‌కు నామినేషన్ సదుపాయం కూడా ఉంది. మైనర్‌ని కూడా నామినేట్ చేయొచ్చు. అయితే మైనర్ పేరు మీద తీసుకున్న అకౌంట్‌కు నామినేషన్ ఉండదు.
  • కొనసాగింపు: పీపీఎఫ్ అకౌంట్ 15 ఏళ్లు ఉంటుంది. ఆ తర్వాత కూడా మరో ఐదేళ్లు పొడిగించుకోవచ్చు. ఇలా ఐదేళ్ల చొప్పున ఎన్నిసార్లైనా పొడిగించొచ్చు. ఆ తర్వాత మీరు డబ్బులు జమ చేయకపోయినా వడ్డీ లభిస్తుంది.
  • ట్రాన్స్‌ఫర్: మీరు పీపీఎఫ్ అకౌంట్ పోస్ట్ ఆఫీస్ నుంచి బ్యాంకుకు, బ్యాంకు నుంచి పోస్ట్ ఆఫీస్‌కు, ఒక బ్యాంకు నుంచి మరో బ్యాంకుకు, బ్రాంచ్‌కు బదిలీ చేయొచ్చు. 

PPF (Public Provident Fund) Account – Interest Rates, Withdrawal & Tax Benefits 

What is a PPF account?

Public Provident Fund (PPF) scheme is a long term investment option that offers an attractive rate of interest and returns on the amount invested. The interest earned and the returns are not taxable under Income Tax. One has to open a PPF account under this scheme and the amount deposited during a year will be claimed under section 80C deductions.

How to open a PPF account

A PPF account can be opened with either a Post Office or with any nationalised bank like the State Bank of India or Punjab National Bank, etc. These days, even certain private banks like ICICI, HDFC and Axis Bank among others are authorized to provide this facility. You need to submit the duly filled application form along with the required documents i.e. the KYC documents like identity proof, address proof, and signature proof. Post submitting these documents you can deposit a prescribed amount towards the opening of the account.

What is the interest rate on PPF?

The current interest rate is 7.1% p.a. (for the quarter 1 July 2021 to 30 September 2021; continued from the previous quarter) that is compounded annually. The Finance Ministry set the interest rate every year, which is paid on 31st March. The interest is calculated on the lowest balance between the close of the fifth day and the last day of every month.

Four essential features of PPF

  • Tenure: The PPF has a minimum tenure of 15 years, which can be extended in blocks of 5 years as per your wish.
  • Investment Limits: PPF allows a minimum investment of Rs 500 and a maximum of Rs 1.5 lakh for each financial year. Investments can be made in a lump sum or in a maximum of 12 instalments.
  • Opening Balance: The account can be opened with just Rs 100. Annual investments above Rs 1.5 lakh will not earn interest and will not be eligible for tax saving.
  • Deposit Frequency: Deposits into a PPF account has to be made at least once every year for 15 years.
  • Mode of deposit: The deposit into a PPF account can be made either by way of cash, cheque, Demand Draft or through an online fund transfer.
  • Nomination: A PPF account holder can designate a nominee for his account either at the time of opening the account or subsequently.
  • Joint accounts: A PPF account can be held only in the name of one individual. Opening an account in joint names is not allowed.
  • Risk factor: Since PPF is backed by the Indian government, it offers guaranteed, risk-free returns as well as complete capital protection. The element of risk involved in holding a PPF account is minimal.

Who is eligible to invest in PPF

  • Any Indian citizen can invest in PPF.
  • One citizen can have only one PPF account unless the second account is in the name of a minor.
  • NRIs and HUFs are not eligible to open a PPF account.

Loan against PPF

  • You can take a loan against your PPF account between the 3rd and 5th year.
  • The loan amount can be a maximum of 25% of the 2nd year immediately preceding the loan application year.
  • A second loan can be taken before the 6th year if the first loan is repaid fully.

PPF withdrawal

As a rule, one can fully withdraw the PPF account balance only upon maturity i.e. after the completion of 15 years. Upon completion of 15 years, the entire amount standing to the credit of an account holder in the PPF account along with the accrued interest can be withdrawn freely and the account can be closed.

However, if account holders are in need of funds, and wish to withdraw before 15 years, the scheme permits partial withdrawals from year 7 i.e. on completing 6 years.

An account holder can withdraw prematurely, up to a maximum of 50% of the amount that is in the account at the end of the 4th year (preceding the year in which the amount is withdrawn or at the end of the preceding year, whichever is lower). Further, withdrawals can be made only once in a financial year.

Procedure for withdrawal from PPF

In case you wish to partially or completely withdraw the balance lying in your PPF account.

Step 1: Fill in the application form using Form C with relevant information.

Step 2: Submit the application to the concerned branch of the bank where your PPF account lies.

What does Form C look like

This form has 3 sections:

Section 1. Declaration section where you must provide your PPF account number and the amount of money you propose to withdraw. Along with that, you also need to mention how many years have actually passed since the account was first opened.

Section 2. Office use section which comprises of details like:

  • Date when the PPF account was opened.
  • Total balance standing in the PPF account.
  • Date on which the previously requested withdrawal was allowed.
  • Total withdrawal amount available in the account.
  • The amount of money sanctioned for withdrawal.
  • Date and signature of the person in charge – usually the service manager.

Section 3. Bank details section asks for the details of the bank where the money is to be credited directly or the bank in whose favour the cheque or the demand draft is to be issued. It is also mandatory to enclose a copy of the PPF passbook along with this application.

What are the tax benefits of investing in PPF?

PPF is one investment vehicle that falls under the Exempt-Exempt-Exempt (EEE) category. This, in other words, means that all deposits made in the PPF are deductible under Section 80C of the Income Tax Act. Furthermore, the accumulated amount and interest is also exempt from tax at the time of withdrawal. It is important to note that a PPF account cannot be closed before maturity. A PPF account, however, can be transferred from one point of designation to another. But, do remember that a PPF account cannot be closed prematurely. Only in the case of the account holder’s demise can the nominee’s file for the closure of the account.

How to open a PPF account in SBI online

Step 1: Log in to the SBI’s internet banking portal at http://www.onlinesbi.com.

Step 2: Click the ‘New PPF Accounts’ option on the side menu.

Step 3: The ‘New PPF Account’ page will be displayed where your name, address, CIF number, and PAN details will be pre-filled.

Step 4: Enter your bank account number and branch code from which you would like to make the payment for the PPF account. Click on the ‘Get Branch Name’ button.

Step 5: Your personal and nomination details will be displayed for verification. Once done, click on ‘Proceed’.

Step 6: Your PPF account will be created in an instant and the account number will be displayed on the screen.

How to open a PPF account in HDFC Bank?

Step 1: Log in to the HDFC Bank internet banking portal.

Step 2: Click on ‘Public Provident Fund’ and select the ‘PPF Accounts ‘option.

Step 3: Click ‘Open Now’.

Step 4: Enter bank account details from which you would like to pay for your PPF account and the PAN number.

Step 5: Verify if all the details you have entered are correct and click on the ‘Proceed’ button.

Step 6: Verify your Aadhaar number. If your bank account is already linked to your Aadhaar, you can click on ‘Generate OTP’, else you will need to update your Aadhaar online. There is also an option to e-sign with the Aadhar OTP as well.

Step 7: Now, your PPF account is instantly created and the account number is displayed.

How to open a PPF account online?

Step 1: Log into your bank account on the internet banking or mobile banking platform.

Step 2: Select the ‘Open a PPF Account’ option.

Step 3: If the account is for self, click on the ‘Self Account’ option. If you are opening the account on behalf of a minor, select the ‘Minor Account’ option.

Step 4: Enter the relevant details in the application form.

Step 5: Key-in the total amount you want to deposit in the account per financial year.

Step 6: Submit the application. An OTP will be sent to the registered mobile number. Enter it in the relevant field.

Step 7: Your PPF account will get created in an instant! Your PPF account number will be displayed on the screen. An email will be sent to your registered email address with all the details confirming the same.

Who can open a PPF account?

Any resident Indian adult can open a PPF account. In the case of a minor or a person with an unsound mind, a legal guardian can open the account on their behalf.

How to withdraw money from a PPF account?

Step 1: Fill in Form C with relevant details. You can download this from your bank or Post Office website or at the branch.

Step 2: Submit the form to the bank or Post Office branch where your PPF account is held.

How to close a PPF account?

As per the rules governing PPF accounts, you cannot fully withdraw your PPF account balance only after the account completes its tenure of 15 years. Upon completion of the 15-year term, you can access the entire account balance, withdraw it fully, and close the account.

Any time before completing the full tenure of the account, you cannot withdraw the entire account balance in any circumstances. However, premature withdrawal of up to 50% of the account balance is allowed after completing 5 years. This is permitted under special circumstances only.

How to transfer a PPF account?

You can transfer your PPF account to another branch of the bank/Post Office, switch from bank to Post Office, or switch from Post Office to a bank. Here is the procedure.

Step 1: Visit the bank or Post Office branch where your PPF account is held.

Step 2: Request for the application form to transfer the PPF account and fill it up with the relevant details.

Step 3: The branch representative will process your application and forward it along with the certified copy of the account, nomination form, account opening application, specimen signature, and the cheque/DD for the outstanding balance of the PPF account to the new branch.

Step 4: Once the new branch receives your application and supporting documents, you have to submit a new PPF account opening application along with the old PPF account’s passbook. You may change the nominee at this point.

Step 5: Once this application is processed, your PPF account is successfully transferred to the new branch.

How to link an SBI PPF account to an SBI account online?

There is no need to link a PPF account held with SBI to an SBI savings account. At the time of opening the PPF account, either online or offline, you will have provided your existing savings account number held with the bank. This means, your new PPF account is created under the existing customer ID. By default, your PPF account will be linked to your savings account. Therefore, you can use the same login credentials for internet banking and access both your savings account and PPF account details under a single platform.

How to know your PPF account number?

When you open a PPF account offline, the bank or Post Office will provide you with a passbook. The passbook contains all the necessary information about the PPF account, such as the PPF account number, bank/PO branch details, account balance, transactions made in the account, and others. You can get the passbook updated regularly to access the latest data.

On the other hand, you can log into your account on the internet banking portal. On the home page, choose the PPF account to see the account details, such as the account number, account balance, recent transactions, and others.

Where to open a PPF account?

You can open a PPF account either at the Post Office branch nearest to you or at a participating bank branch based on your convenience. The participating banks that offer a PPF account are given below.

  • Bank of Baroda
  • HDFC Bank
  • ICICI Bank
  • Axis Bank
  • Kotak Mahindra Bank
  • State Bank of India
  • Bank of India
  • Union Bank of India
  • Oriental Bank of Commerce
  • IDBI Bank
  • Punjab National Bank
  • Central Bank of India
  • Bank of Maharashtra
  • Dena Bank

How to link Aadhaar with a PPF account online?

Step 1: Log on to your internet banking account.

Step 2: Click on the ‘Registration of Aadhaar Number in Internet Banking’ option.

Step 3: Enter your 12-digit Aadhaar number therein and click on ‘Confirm’.

Step 4: Select the PPF account to link it to the Aadhaar number and done.

Step 5: Click on the ‘Inquiry’ option on the homepage to check if the Aadhaar linking request is completed.

How to open a PPF account in a Post Office?

Step 1: Get an application form from your nearest post office or online.

Step 2: Fill up the form and submit it with the required KYC documents and passport size photograph.

Step 3: Make the initial deposit required to open a post office PPF account. The amount can range from Rs.500 up to Rs.1.5 lakh per financial year.

Step 4: Once your application is processed, a passbook will be given to you for the PPF account opened.

How to check PPF account balance online?

Step 1: Log in to your internet banking account.

Step 2: Open the PPF account details to check the latest PPF balance and the recent transaction details.

What is a PPF account? What are its benefits?

Public Provident Fund (PPF) is a retirement savings scheme offered by the Government of India with the aim of providing a secure post-retirement life to everyone. The minimum deposit you must make in the account per financial year is Rs.500 and it can go up to Rs.1.5 lakh. In addition to providing retirement savings, you can also claim income tax benefits on the amount you invest in the account.

Here are the benefits you can expect from a PPF account

  • Risk-free returns as the returns are not dependent on the market volatility.
  • Compounded interest rate.
  • Income tax deduction u/s 80C of the Income Tax Act, 1961.
  • Long-term investment for 15 years.
  • Loans and advances against PPF balance.
  • Low investment amount of Rs.500.
  • Unlimited extension facility of PPF account in the blocks of five years upon maturity.
  • Partial withdrawal facility from the seventh financial year onwards.

How many years a PPF account can be extended?

A PPF account can be extended in the blocks of five years any number of times upon the maturity of the account after 15 years from the date of opening the account.

How to withdraw money from a PPF account before maturity?

Step 1: Check if you are eligible for premature withdrawal.

Step 2: If you are eligible, get Form C from the bank or Post Office and fill it up with relevant details.

Step 3: If the account is in the name of a minor, you will have to provide an additional declaration stating the money you are withdrawing is for the sake of the minor and that the minor is alive.

Step 4: Submit the form and any supporting documents to the bank or Post Office branch.

Step 5: If all the information and documents you have provided are satisfactory, the bank or PO will process it and release the payment.

Which bank is the best for a PPF account?

PPF accounts are offered by the Government of India and are not specific to a bank. Also, all banks provide the same set of features and benefits when you open a PPF account. The interest rate is set by the government and it remains the same wherever the PPF account is held. Therefore, there is no best bank that offers a PPF account.

When to deposit money in a PPF account?

There is no specific due date as to when you should deposit money in a PPF account. However, it is beneficial for you to deposit money between 1 April and 5 April of a financial year. If it is not possible for you to make the full year’s deposit at the beginning of the year, you can make monthly deposits within the 5th of the month to earn maximum benefits.

How many times a PPF account can be extended?

PPF account can be extended any number of times without any restrictions.

How many PPF accounts can be opened

An individual can open only one PPF account across the country either in a bank or Post Office.

How much money can be withdrawn from a PPF account?

You can withdraw the money partially after completing five years from the date of opening the account. However, you can only withdraw up to 50% of the total account balance at the end of the fourth year from the date of opening.

How to convert a minor PPF account to a major?

When a minor PPF account holder becomes a major or turns 18 years old, you can submit a revised application form along with necessary documents stating the age of the account holder to change the status of the account from minor to major. The guardian can submit the application along with the account holder’s signature on the application form as an attestation.

How to close a PPF account in a Post Office?

You can close a PPF account after completing 15 years from the date of opening the account. The procedure is given below.

Step 1: Fill up the relevant information in Form C and attach your PPF passbook.

Step 2: Submit this to the relevant Post Office branch where the account is held.

Step 3: Your application will be processed and the account will be closed. You will receive the payment in your savings account linked to the PPF account

What is the minimum lock-in period for a PPF account?

The minimum lock-in period for a PPF account is 15 years, the actual tenure of the PPF account.

How does the PPF account work?

A PPF account can be opened by an adult for self or on behalf of a minor. The account tenure is 15 years and the lock-in period for the account is 15 years. You can make a deposit to a PPF account ranging from Rs.500 up to Rs.1.5 lakh per financial year. The deposit can be made in a lump sum or in instalments. There is no restriction on the number of instalments per financial year. The deposits must be made every financial year during the tenure and such deposits are exempt from income tax u/s 80C.

You are required to make a minimum deposit of Rs.500 per financial year to keep the account active. If you fail to make this deposit, the account will be discontinued. You will have to pay a penalty of Rs.50 along with the minimum deposit of Rs.500 to reactivate the account.

An interest rate of 7.1% p.a. (Q2 FY22) is applied to the deposit and is compounded annually. A loan facility is available on the PPF balance. Also, you can make partial and premature withdrawals on the PPF account subject to certain conditions. Upon completing the tenure, you can choose to extend the account with or without making additional contributions. You also have the option to close the account.

How to activate an inactive PPF account?

In order to reactivate an inactive PPF account, you can follow the steps below:

Step 1: Submit a written letter to the bank or PO branch requesting to reactivate it.

Step 2: Pay a minimum amount of Rs.500 for each year you have not made any contributions along with the penalty of Rs.50 per inactive year.

Step 3: The bank or PO will process your request and reactivate the account.

Frequently Asked Questions

Is it mandatory to withdraw the PPF account balance at the end of the 15 years?

It is not mandatory for you to withdraw the PPF balance at the end of the maturity period, i.e. 15 years. You can let the money stay in the account so that it accrues interest as long as you close the account.

Can I extend the tenure of the account for 3 years since I may need the sum then?

You can only extend the account tenure in the blocks of five years upon maturity.

How many times am I allowed to extend the tenure in the blocks of five years?

There is no upper limit on the number of times you can extend the tenure of the account as long as you extend it in the blocks of five years. However, you can only extend the tenure upon the maturity of each block.

I don’t think I can continue to contribute to my PPF account anymore. Can I close my account?

Individuals are allowed to close their PPF account only after completing five years. Also, there are certain criteria to be satisfied in order to close the account.

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