Public Provident Fund is one of the most efficient schemes introduced by the government of India for all citizens of the country. The Public Provident Fund Account is liable for excellent tax benefits as the interest earned on PPF deposits are free from taxes. Then the contributors to PPF Scheme can claim tax deductions and get good returns, making it the most beneficial investment especially from the post-retirement point of view. Given below are all details regarding opening a PPF account.
Public Provident Fund Account Requirements
Various regulations guide an investor who wants to open a PPF Account. There are certain eligibility criterions laid down along with documents to be provided to commence the account. To maintain the account there are various requirements to be fulfilled both financially and legally. Further details are specified next.
Eligibility Criteria For PPF Account
Given below are the eligibility rules that stand for individuals interested to open a PPF Account:
- Only an Indian citizen is allowed to open a PPF account.
- The starting age for opening a proper PPF account is 18 years. There is no upper limit in age.
- If a PPF account is to be opened for a Minor (citizen below 18 years) then a deposit limit of 1.5lakhs is set per annum. Also, a minor’s account can be opened only the parents or legal guardian.
- The account can only be opened by an Indian citizen residing in India. No NRI’s are allowed to open a PPF account. But, if an Indian resident becomes an NRI post opening of the PPF account, they are allowed to continue with the account until the date of maturity.
- One person is eligible to open only one PPF Account.
- Post-May 2005, Hindu Undivided Families have been disallowed from opening PPF accounts. If any citizen belonging to HUF is an account holder before 2005, they are allowed to maintain the account till the date of maturity.
Documents Required To Open A PPF Account
Following are the list of documents needed to open a PPF account. All the most updated copies of the documents are required.
- Updated Passport, Aadhaar UID Card, PAN Card, Rental Documents/Residential Proof, Letter of the Employer, Driving License, Voter ID Card, Statement Records of Bank Accounts, Cheque Signed By the prospective account holder(Signature Proof). Also, keep copies of all these documents.
- In addition to these documents, you will need recent photographs.
- A fully filled and approved form for account opening.
- Also, a Nomination Form has to be filled in case the account holder is naming nominees.
- Age proof ID like Birth Certificates in the case of Minors.
Note: The bank may ask for other documents on their sole discretion.
How To Open a PPF account?
A PPF account can be opened at either bank, post offices or online. It is an initial low-cost investment account. It can be opened in the denominations of INR 100, with the total annual deposit of minimum INR 500.
How To Open a PPF account: At Banks or Post Office
The government authorised banks and post offices can be contacted for opening a PPF account. A physical copy of the Account Opening Form can be obtained from the bank or post office. This form is to be filled properly and submitted along with the copies of the required documents as specified by the bank or post office. Then, after approval, an initial deposit is to be made to commence the account.
PPF Accounts can be opened in Banks that have been authorised by the government since this scheme is totally monitored by the Government. Also, sole discretion, the government can withdraw the authority from any bank.
How To Open a PPF account Online
A PPF account can be opened online via the website of any government authorised bank or an agent bank that provides services for the authorized banks. The Account Opening form is to be filled online and submitted through the online portal of the bank. A variety of benefits is provided by some authorised banks like connecting the PPF account with the savings account, generating online statements of the financial assets. All fund transfers can be done online. Thus, with the introduction of the online option, more investors are considering it as compared to the traditional methods of physically opening it at banks or post offices.