Public Provident Fund - PPF

[greatindianwiseman]

Minimum annual contribution for PPF is Rs 1,000

[mrindia]

Originally Posted by greatindianwiseman

Minimum annual contribution for PPF is Rs 1,000

I doubt its Rs 500/- per annum
mr india

[magnet]

Minimum 500...maximum 70000 for an individual....

http://www.dnaindia.com/money/column...se-ppf_1247883

[p_srinivasulu]

My PPf a/c matured on 31st march 2009.In view of the new direct tax code provisions,I propose to extend it by a block of 5 years -which is said to be mandatory to apply for extending the ppf a/c- and then on 31 st march 2011,I propose to close it while continuing my remittances to the a/c for tax saving during 2009-10 and 2010-11.Can i close the ppf a/c after 2 years in the extended 5 year block period? Also,will there be any loss of interest paid to the balance ,in the two year period2009-2011, than the offered rate of 8% p.a?From april 2011,the new tax code makes the balances after april 2011 as fully taxable ,taking away the advantage of PPF hitherto.What is your advice?

[subodh9]

I would like brief on followings

1) Once my PPf account matured after 15 years , How many times I can extend the same PPF account in block of 5 Years ?

2) Can I open PPF account on wife or minors name if they dont have source of income ?

Quote

i) Sequel to amendments to various Small Savings Schemes to restrict the scope of investments only to individuals, the accounts, if any, opened by juristic persons (HUFs, Trusts, Provident Funds, etc.) i.e. persons other than individuals (through single or joint accounts or deposits by guardians on behalf of minors and persons of unsound mind as per rules) on or after May 13, 2005, under any of the small savings scheme including Public Provident Fund Scheme, 1968, shall be treated as void ab initio and immediate action should be taken to close such accounts and to refund the deposits without any interest to the depositors.

Unquote

Thanking you in the anticipation.

Regards,
Subodh

[vijayvaliya]

1. 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.

2. 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.

3.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. So, if you opened it in FY 2006-07 (this financial year), you will be able to withdraw it 15 years later, starting March 31, 2007 (end of this financial year). That means your PPF matures on April 1, 2022. It can be extended for a (one or more blocks) five years after that. During these five years, you earn the rate of interest and can also make fresh deposits. 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.

[passout81]

Hello Sir,
I paid some amount to my PPF account on January-2009 . Have not paid any amount till now as i am in US for a project work. Found from your article that account will be defunct if the minimum amount (Rs. 500/-) will not be paid for a year. could you please assist me how to activate my account , i don't want to discontinue the same account ?

Although account is activated do i barred from all the benefits provided by PPF?

[vijayvaliya]

Originally Posted by passout81

Hello Sir,
I paid some amount to my PPF account on January-2009 . Have not paid any amount till now as i am in US for a project work. Found from your article that account will be defunct if the minimum amount (Rs. 500/-) will not be paid for a year. could you please assist me how to activate my account , i don't want to discontinue the same account ?

Although account is activated do i barred from all the benefits provided by PPF?

You can pay the subscription in the new financial year (April-2010 - March-2011). There will be a fine which will be deducted by the Bank, which earlier was Rs. 10/-. I dont know the fine amount now.

[magnet]

Can i sift my PPF account to another government bank?

Not happy with my area SBI because of their service...Once a year i come to fill passbook that too it take an hour

[vijayvaliya]

Originally Posted by magnet

Can i sift my PPF account to another government bank?

Not happy with my area SBI because of their service...Once a year i come to fill passbook that too it take an hour

Ya. You can transfer your PPF account from one bank to another. You have to submit the application in the bank you intent to tranfer the account, with the details of your account.