With present Public Provident Fund or PPF rate of interest at 7.1 per cent each year, PPF is among the excessive yielding small saving schemes backed by the central authorities. It has a maturity interval of 15 years however the PPF account holder is allowed to withdraw cash after 5 years of account opening topic to some phrases and situations. But, a PPF account holder can withdraw or deposit cash solely in an lively PPF account. So, it is higher to satisfy the minimal necessities to maintain one’s PPF account in lively mode. However, in case the PPF account develop into inoperative, one can activate one’s PPF account fulfilling the PPF account guidelines.
Speaking on when a PPF account turns into inoperative Manikaran Singhal, founder at goodmoneying.com stated, “A PPF account holder needs to deposit at least ₹500 in single financial year. Failing to which, the PPF account becomes inoperative. So, one is advised to deposit at least ₹500 in one’s PPF account by 31st March of each financial year cycle and keep the PPF account in active mode.”
On learn how to activate an inoperative PPF account SEBI registered tax and funding professional Jitendra Solanki stated, “To activate an inoperative PPF account, one needs to deposit ₹500 for each non-deposit years and a penalty of ₹50 for each such years.” That means if a PPF account holder has not deposited ₹500 in a single’s PPF account for 2 years, the account holder must deposit ₹1,000 ( ₹500 x 2) and ₹100 penalty ( ₹50 x 2).
Solanki went on so as to add that after 15 years of maturity interval, the PPF account holder has to both withdraw PPF maturity quantity or she or he ought to inform the financial institution or publish workplace that they need to proceed the PPF account for subsequent 5 years. Failing to this results in conversion of PPF account in ‘extension without contribution.’ In such case, the PPF account will stay lively however the account holder will not be capable to deposit in a single’s PPF account.
Subscribe to Mint Newsletters * Enter a sound e-mail * Thank you for subscribing to our publication.
