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Public Provident Fund (PPF): Did you know these?

How do I revive an old PPF account?

You can revive your account by paying a fee of Rs. 50 for each year that you default, along with subscription arrears of Rs. 500 for each such year. Even if your account is discontinued, you will not be debarred from opening up a new account.

 

What happens in case the balance in the PPF account is not withdrawn?

If the balance is not withdrawn, it will continue to earn tax-free returns for you.

 

What is the legal status of the PPF account should I be involved in some legal dispute?

The balance in a PPF account cannot be attached under an order or decree of a court. This simply means that if you are involved in a legal dispute, a court cannot attach or question the money in your PPF account, as would be the case when it comes to your other personal property. But, the PPF account can be attached by the Income Tax and Estate Duty authorities.

 

Should PPF nominees have a joint account?

It is advisable to open a savings account of the nominee or nominees in the same bank and mention this account number in the PPF account opening form.

Since a single cheque is issued in favor of all the nominees, it is advisable for nominees to open a joint bank account.

Can I have a PPF account at the State Bank of India, can I open another account in the post office and vice-versa?

No. you can have only one account in your name, either in the post office or at the State Bank of India (and its affiliates).

You have to declare this in the account opening application form.

 

Can I open a PPF account in the name of a minor?

Yes, you can open a PPF account on behalf of a minor child under the PPF scheme as a guardian or parent(s).

 

Note: There can be only one account in one minor's name.   

 

Can two adults open joint PPF account?

No, two adults cannot open a joint PPF account. An account has to be opened singly with one or more nominations.


It is advisable to open a separate account in your spouse's or minor children's name and keep contributing to it. You can claim tax benefits on the contributions made to their PPF accounts as well.

 

In the event of the minor subscriber's death, is the balance in the account payable to the guardian?

If the minor subscriber expires, the guardian will not be 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.

 

 

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