A Public Provident Fund or PPF is a long-term tax-saving instrument that offers a set fee of curiosity yearly on the quantity that you just invested throughout the yr. It comes with a lock-in interval of 15 years.
In a PPF account, the curiosity you earn is tax-free and the quantity that’s deposited throughout the monetary yr could be claimed below Section 80C.
The present PPF rate of interest stands at 7.1 per cent each year and it is among the high-yielding small saving schemes backed by the federal government.
Now, maintaining a PPF account lively is crucial for making your tax-saving deposits. A minimal deposit of Rs 500 is critical throughout a monetary yr to maintain it lively.
But what occurs in case you overlook to make a minimal deposit in your PPF account and it turns into inactive?
Here’s learn how to reactivate your PPF account:
A written utility can be required to be despatched to the financial institution or put up workplace’s department the place the account was opened requesting them to revive your deactivated PPF account. The utility must be made at any time throughout the 15-year interval of the account.
The depositor will even must make a minimal deposit plus the penalty for nonpayment. As mentioned above, within the monetary yr a minimal quantity of Rs 500/fiscal must be deposited, together with this a penalty of Rs 50 for every monetary yr during which the account was inactive must be paid to the monetary establishment.
A cheque of the identical then must be submitted to the department.
