10 Things about PPF account in Post office will blow your Mind..!!

Written by Sravan

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There are 5 conditions in which the account holder will be allowed to withdraw PPF money from Post office.

1. When PPF Account holder, Spouse or Dependent children has any Life threatening diseases.

2. For PPF account holder or for dependent child higher education purpose.

3. Even if the PPF account holder changes his residential status from Resident to NRI.

In any of these cases, the PPF Account holder should submit their Withdraw PPF balance by providing a PPF Withdrawal form, Passbook along with Proper proof of documents.

Charges:
Pre-Mature Closure of PPF account in Post office is not Free. When you opt for Pre-Mature Closure, you will be charged with Pre mature closure interest @1% will be charged.

1. How much will I get after 15 years in PPF?

For Example,
If you deposit Rs.10,000 per month for 15 years, you will get Rs.32.54 Lakhs at the end of 15 Years. If you deposit Rs.1,50,000 every year for 15 years, you will get Rs.40.68 Lakhs at the end of 15 Years.

2. What are the rules for PPF in post office?

1. You must be an Indian Citizen
2. Minimum Deposit Limit – Rs.500 per Financial Year
3. Maximum Deposit Limit – Rs.1,50,000 per Financial Year
4. Maturity Period – 15 Years
5. Withdraw rules – Can withdraw only after 5 years of account opening
6. Tax deduction – Eligible U/s 80C of Income Tax upto Rs.1,50,000

3. What is the Minimum limit in PPF?

In Post office Public Provident Fund (PPF), you should mandatorily deposit a Minimum amount of Rs.500 rupees in a Single Financial Year. Here, the Financial Year means period which starts from 1st April and ends on 31st March.

4. What is the Maximum limit in PPF?

The Maximum amount you can deposit into Post office Public Provident Fund (PPF) plan is up to Rs.1,50,000 rupees in a Single Financial Year.
There is no limit on number of instillments you can deposit in your PPF. but all your PPF deposits should be made in multiples of Rs.50 only.

5. Can we have 2 PPF accounts?

No. You cannot open 2 Public Provident Fund (PPF) accounts in different banks. A family can have each different PPF account but one cannot hold more than one.

6. Can I open a new PPF account after closing one?

Yes. In case, if your existing Public Provident Fund (PPF) account is closed, again you can open another account with a maturity period of 15 years.

7. Can I open a PPF account in another bank?

No. Individuals cannot open more than one PPF account in different banks.

8. Can I close a PPF account and open another?

You can open existing Public Provident Fund (PPF) account and can create another. But at a time one cannot have two PPF accounts.

9. Is there any Maximum monthly deposit limit in PPF account ?

The Maximum amount you can deposit into Post office PPF plan per Financial year is up to Rs.1,50,000 rupee. It does not mean that you should deposit Rs.12,500/- per month. You can deposit a month Rs.50,000 and in another month you can deposit Rs.1,00,000/-. The Maximum limit of Rs.1,50,000/- is the limit for a Financial Year and with no monthly limits.

10. How many times i can deposit in PPF in a month ?

You can deposit money in PPF account in any number of times. There is a upper limit of Rs.1,50,000 rupees per financial year but there is no upper limit on number of transactions in PPF account.

11. PPF Tax exemption limit

All your PPF Deposits up to Rs.1,50,000/- per Financial year will qualify for Deduction u/s 80C of the Income Tax Act,1961

12. When Loan on PPF account balance is not allowed

In case the PPF subscriber discontinued his account, then the subscriber is not eligible for Loan facility.

13. What happens if PPF account holder dies before maturity ?

In case the Public Provident Fund (PPF) account holder dies, the PPF account will be closed. The Nominees or Legal heirs are not allowed to make any furhtur deposits in such PPF account. The balance available in PPF account will be transferred to the Nominees or Legal heirs.

14. How to open PPF account in post office?

1. Login to Your Bank Account
2. Select “Open a PPF Account”
3. For Self, Click on “Self Account” option
4. For Minor, Click on “Minor Account” option
5. Fill the relevant “Application form”
6. Enter the “Amount” you want to Deposit.
7. Submit application
8. Enter “OTP”
9. Your PPF account will be Successfully created instantly.

Author is a Qualified CMA with rich industry experience for more than 6 years. He is an All India Ranker (AIR-101) in CMA and also a Semi-Qualified Chartered Accountant having a quite good experience in teaching the subjects of Accounting and Costing to the commerce aspirants.

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