No. A maximum of Rs.1.50 Lacs is allowed per assessee. This is because a minor is clubbed with a major assessee (parents).

The balance in such cases is payable to the legal heirs of the minor. The guardian is not entitled to the payment of the balance.

In case of death of a guardian, the account of minor remains operative and a new account need not be opened. The surviving natural guardian or a guardian appointed by a competent court may continue the account of minor after producing the necessary guardianship certificate.

The investor can wish to extend the account without any fresh deposit and continue to earn interest. The investor can also continue making fresh investments within the same limits.

The investor needs to inform the Accounts Office of the same within one year of the maturity of the account.

The account will automatically get extended without fresh deposits. The investor will continue to earn interest.

No. A PPF account is not transferable from one individual to another. Also, the nominee cannot continue the account of a deceased subscriber in his/her own name.

From 7th financial year, partial withdrawl is allowed and so loan facility is not available

The loan taken from PPF has to be returned within 36 months. The tenure of 36 months is calculated from the 1st day of the following month in which the loan is taken.

The rate of interest charged on loan taken by the subscriber of a PPF shall be 1.00% more than the prevailing interest on PPF.

Yes. The loan facility can be availed from the start of the 3rd financial year up to the 6th financial year. The amount of loan can’t exceed 25% of the balance at the end of the 2nd immediately preceding year.

A PPF account can be opened by either parent on behalf of their minor child. Only one PPF account can be opened in the name of the minor. It means, mother and father both cannot open PPF accounts on behalf of the same minor. The total contribution for the guardian from his/her account and the minor account cannot exceed the annual investment limit. Grand-parents cannot open a PPF account on behalf of minor grand-child. However, in case of death of both the father and mother, grand-parents can open a PPF account as guardians of the grand-child.

No. Only one PPF account can be maintained by an individual, except an account that is opened on behalf of a minor.

No. The Power of Attorney can neither open the PPF account nor operate it on behalf of an account holder.

If a resident Indian becomes an NRI, he can continue to invest in PPF just like a resident individual. However, an NRI cannot extend his account beyond maturity. Furthermore, the investor can also prematurely close his/her PPF account.

The interest rate on PPF is reviewed by the Central Government on a quarterly basis. The current interest rate effective for the quarter January-March'24 is 7.10% per annum. Interest for a particular month is calculated on the lowest balance between the close of the 5th day and the end of the month.

Yes. After completion of 15 years, you can extend the tenure by a block of 5 years within one year from the date of maturity. The same can be done as many times.

A PPF account can be closed before maturity after completion of a minimum of 5 years if-
The amount is required for treatment of serious ailment of account holder/spouse/dependent children or parents
The amount is required for financing higher education of a child.
Change in residency status of the account holder In any case, the account holder will be subjected to a 1.00% less interest rate since the beginning.

Yes. Pre-mature partial withdrawal is allowed from the start of the 7th financial year. For example, if an account was opened in FY 2014-15, partial withdrawals can be made after 1st April’ 2020. Only one withdrawal is allowed per financial year.

An investor has the following options:
1. Close the account and withdraw the entire amount; or
2. Extend the account without fresh deposits; or
3. Extend the account with fresh eposits.

A Non Resident Indian (NRI), Hindu Undivided Family (HUF) and corporates cannot open an account.

The new deposits will not earn any interest and the benefits of Sec. 80C of the Income Tax Act will not be available.

Yes. A PPF account can be opened either by the mother or father on behalf of their minor son or daughter. Only one PPF account can be opened in the name of minor. It means, mother and father both cannot open PPF accounts on behalf of the same minor.

Grand-parents cannot open a PPF account on behalf of minor grand-child. However, in case of death of both the father and mother, grand-parents can open a PPF account as guardians of the grand-child.

Yes. In the event of her marriage, a female subscriber may request for change in surname by submitting documentary evidence of the same.

If a resident Indian becomes an NRI, he can continue to invest in PPF till maturity. He will continue to earn same interest rate as given to resident Indians. However, an NRI cannot extend his account beyond maturity.

Interest for a particular month is calculated on the lowest balance between the close of the 5th day and the end of the month.

Yes. The scheme comes with a lock-in period of 15 years. The period of 15 years is calculated from the end of the financial year in which the account was opened.

Yes. You can extend the tenure of PPF account for a block period of 5 years beyond the maturity period within one year from the date of maturity. It can be done as many times as one wish.

Yes. The scheme provides for liquidity in the form of loans and withdrawls during the lock-in period.

The loan facility can be availed from the 3rd financial year till the end of the 6th financial year. The amount of loan can't exceed 25% of the balance at the end of the 2nd immediately preceeding year. Suppose you have a balance of Rs.1.63 Lacs, Rs.3.40 Lacs and Rs.5.30 Lacs at the end of FY 2014-15, 2015-16 and 2016-17 respectively. So the eligible loan amount in FY2017-18 will be Rs.0.85 Lacs, i.e., 25% of Rs.3.40 Lacs.

Interest rate charged on the loan taken is 2% higher than the prevailing interest rate on PPF set by the Government.

No. Once the interest rate is set for the loan, then the same rate will be applicable until the repayment period.

The loan taken from PPF has to be returned within 36 months. The tenure of 36 months is calculated from the 1st day of the following month in which the loan is taken.

No. You will not be eligible for a new loan until the old loan has been paid off along with interest.

In case the loan is not repaid within 36 months, then the applicable interest rate would be 6% instead of 2% above interest rate on PPF, from the date the loan was taken till the loan has been repaid.

Partial withdrawls can be made from PPF starting from the 7th financial year,e.g., if an account was opened in FY2014-15, partial withdrawls can be made after 1st April' 2020.

Yes. A person can withdraw lower of the following:
a) 50% of the balance available at the end of 4th year immediately preceeding the year of withdrawl; or
b) 50% of the balance stood at the end of the preceeding year. However, any loan will be deducted from the eligible amount for withdrawl. Suppose you have a balance of Rs.1.09 Lacs, Rs.2.27 Lacs, Rs.3.55 Lacs, Rs.5.49 Lacs, Rs.7.60 Lacs and Rs.9.84 Lacs at the end of FY 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17 respectively. So the eligible withdrawl amount in FY2017-18 will be lower of 50% of:
a) 50% of the balance at the end of FY2016-17,i.e., 50% of Rs.9.84 Lacs = Rs.4.92 Lacs; or
b) 50% of the balance at the end of FY2013-14,i.e., 50% of Rs.3.55 Lacs = Rs.1.78 Lacs.

No. Only one withdrawl is allowed per financial year.

Yes, the PPF account can be attached by the Income Tax and Estate Duty authorities. The PPF Act only gives the account holder immunity against attachment under a decree / order of a court of law. That means PPF cannot be attached by any court.

Here the claim can be made for the FY 2017-18. Earlier it was possible to claim as per the cheque deposited date but from March 29, 2010 the rules has been changed.Now the date of realisation of cheque/draft will be deemed as the date of deposit of PPF.

If an investor fails to deposit the minimum account of Rs. 500/- in any financial year, the account will be treated as discontinued.

The investor may revive the discontinued account by payment of Rs. 50/- for each year of default along witharrear subscription of Rs. 500/- for each year.

In case of death of guardian, the account of minor remains operative and a new account need not be opened. The surviving natural guardian or a guardian appointed by a competent court may continue the account of minor after producing the necessary guardianship certificate.

No, the guardian is not entitled to the payment of the balance. The balance in such cases is payable to the legal heirs of the minor in accordance with Section 8 of Public Provident Fund Act and para 12(6)(ii) of the Public Provident Fund Scheme.

The account will automatically get extended for a block period of 5 years without fresh deposits. The invesor will continue to earn interest.

The balance in the account will keep earning the applicable interest rate and any amount of withdrawal can be made during the extended period. However, only one withdrawal will be allowed in each financial year during the extended period. Once the account is continued without deposits, for more than a year, the subscriber cannot opt again to continue the account with deposits for a block period of 5 years.

The investor can withdraw upto 60% of the balance at the commencement of the extension period. This rule applies to next block of 5 years extension as well.

yes

A PPF account can be opened by resident individuals and individuals on behalf of minors.