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PPF Tax Savings

Public Provident Fund (PPF) – is one of the popular, preferred, and preeminent tax saving investments . We all know about PPF. But do we know all about PPF?

Let us discuss in detail about the less known facts of PPF in this article and understand it comprehensively and completely.

    Table of contents

1) What is PPF?

The Public Provident Fund (PPF) Scheme is a tax-free savings account scheme offered by the Government of India. The PPF is a safe investment because it is backed by the Government and can’t be attached for your debt or liability. The benefits of a PPF account you can enjoy are high returns, tax-exemption, and security to capital.

2) How to open/invest in a PPF account?

Places, where a PPF account can be opened are Post Office & Banks(Selective). Most banks offer online facilities to open a PPF account, whereas a Post Office still follows the traditional offline method. Let’s take a look at the eligibility criteria and requirements to open a PPF account.

Eligibility to open a PPF account:

  • The individual should be an Indian resident.
  • The individual should not hold any other PPF account. An individual can hold only one PPF account.
  • NRI’s cannot open a new PPF account. But an NRI who opened a PPF account while they were residing in India can continue to deposit only until the maturity period.
  • Minors can open a PPF account in association with their parent/guardian.

Documents required to open a PPF account:

  • PPF account opening Application Form – from the respective platform (Bank/Post Office).
  • Identity Proof (PAN/Driving license/Voter ID/Passport/Aadhar Card).
  • Address Proof (Telephone bill/Ration card/Aadhar Card)
  • Two passport size photograph.
  • In case of a minor account holder, Birth Certificate will be required.

Remember to take all the originals and also a photo-copy that is self-attested. A minimum deposit of ₹ 500 should be made while opening the PPF account.

3) What is the interest rate of the PPF scheme (as in July 2021)?

The interest rate of the PPF scheme will change for every quarter of a financial year in accordance with the Government bond yield. The interest rate of the PPF savings scheme has been around 8% on an average for the past 15 years consistently.

he current interest rate for PPF is % p.a for the 2nd quarter (July – September) of 2021.

4) How is the interest calculated in a PPF account?

PPF tax saving

For the balance amount in your PPF account, the interest is compounded annually. However, the interest calculation will be done each and every month.

A tip to get maximum interest from PPF:

If your contribution to the PPF account is credited on or before 5th of that month, then that contribution will bear interest for that month too. If it is credited after 5th of that month, you will get interest only from the subsequent month. Therefore, if you make sure your contribution is

getting credited in your account on or before 5th of that month, and then you will not miss the interest for that month as well.

5) When does PPF interest get credited?

As per norms, PPF interest is calculated every month but it is credited into the account at the end of every financial year on March 31.

6) What is the minimum and maximum investment of a PPF?

The minimum amount needed to be invested every year is Rs.500. The maximum amount of investment allowed every year is ₹ 1.50 lacs. You can make investments in a lump sum or through a maximum of 12 installments per year. If your minor child also holds a PPF account then the combined limit of both the PPF account is limited to ₹ 1.50 lacs.

Not making the minimum investment in a year will attract a penalty of ₹50.

If you invest more than the ₹ 1.5 lacs limit, you will not get any interest for the excess amount and it will be refunded to you.

7) What are the tax benefits in a PPF account?

Under Section 80 C, the contribution you make in PPF is eligible for a tax deduction. Also, the interest from PPF is also tax-free.

These tax benefits are available as the PPF falls under EEE (Exempt, Exempt, Exempt) tax basket.

But the tax-exemption by 80 C is limited to a maximum investment of ₹ 1.5 lacs.

Tax benefits of PPF after maturity period:

You can enjoy the tax benefits even after the maturity period of 15 years if you choose the option to extend it with or without fresh contribution under section 80 C limitations (< ₹ 1.5 Lacs).

8) When does a PPF account mature?

A PPF account will mature at the end of the 15th year. This can be extended for one or more blocks of 5 years thereafter.

There is a common confusion about the maturity period of the PPF. For example: If you open a PPF account on 20th June 2020 most people think their PPF mature exactly after 15 years, on 20th June 2035. But your PPF will actually mature on 1st April of 2036. (a PPF matures only on the beginning of the subsequent financial year after completion of 15 years)

9) How to extend the PPF maturity period?

In order to extend the PPF account without fresh contribution, you need not do anything. The account gets extended automatically for the next set of 5 years. Interest will be earned for the existing balance for the next 5 years. Once the PPF account is continued without minimum deposit for more than a year, you cannot make a deposit to that account for the next 5 years.

In order to extend the PPF account with a fresh contribution, you need to intimate the Accounts Office within one year after maturity along with a filled-in Form-H. If you keep making deposits after maturity without intimation through Form-H, then your account will be treated as irregular and no interest will be paid.

What are the three options available on the maturity of PPF account?

  • Option:1 Anytime after 15 years, you can close the account by submitting Form-3 to the account office. The accounts office shall allow you to withdraw the amount along with due interest.
  • Option:2 You can use the account after maturity without making any further deposits and still earn interest. You can withdraw money once a year within the deposits. But the drawback is, if you haven’t made any deposit for more than a year, then you cannot have the option to continue the account with deposits.
  • Option:3 You can extend your PPF account with further deposits during the block period of 5 years by submitting Form-3 to the accounts office. But you have to apply before the expiry of one year from the maturity of the account. If you have failed to submit the form within the first year of maturity, then you need to continue your account without any further deposits.Even if you deposit the money, it will be considered as a regular account and it will be refunded without any interest. 
    If you are planning to extend your account after maturity, then you can withdraw 60% of money in one instalment during a block period. Or more than one instalment in different years but not exceed one withdrawal in a year.

10) Can I withdraw from my PPF account before maturity?

Yes. You can withdraw from the 7th year. However, you can withdraw only up to 50% of the balance at the end of 4th year or 50% of the balance at the end of the immediate preceding year whichever is lower. You are allowed to withdraw only once in a year.

How to withdraw from PPF account in case of an emergency?

After completion of the 5th year, you can close the PPF account in case of emergency situations like,

  • A life-threatening medical diagnosis of the account holder, spouse, children, parent or the minor account holder.
  • Higher education expense of account holder or the minor account holder.

Documents required to withdraw from PPF account before maturity

  • Form-C.
  • Any documents as proof for the emergency event.

11) How to withdraw from PPF account after maturity?

Once your PPF is matured, you can close the account and withdraw the full amount from the account. Also, as we discussed earlier you can choose to extend the term of PPF for another 5 years with or without contribution.

The documents required to withdraw the balance from the PPF account after maturity.

  • Form-C filled in by the PPF account holder.
  • Passbook of the PPF account holder.

12) Can I get a loan against my PPF account?

Yes. You can avail the loan facility only from the 3 Financial year to the 6th Financial year. For example: if you opened a PPF account on 20th June 2020, (i.e. FY 2020-21) you can get a loan from 1st April 2022 (i.e. FY 2022-23) to 31st March 2026 (i.e. FY 2025-26).

You will be allowed to take a loan to the extent of 25% of the balance in the previous year.

However, you are allowed to take a loan only once in a year.

How to get a loan against my PPF account?

From the 3rd year to 6th year, you are eligible to apply for a loan against your PPF account.

The documents required to get loan against PPF account

  • Form-D filled by the PPF account holder.
  • Passbook of the PPF account holder.

PPF Loan Interest rate:

The interest rate for the loan against PPF account is 2% above the PPF interest rate you receive.

PPF Loan Repayment:

The loan against PPF must be repaid within 36 months. After repayment, you can avail a loan with the 6th Financial year. Even if you repay the loan in the same year, you cannot take another loan within the same year.

13) Can an NRI open a PPF account?

The 2019 notification about NRI PPF account states that an NRI can’t open a new PPF account. If you have opened a PPF account as a resident and subsequently you become an NRI, you will be allowed to continue and contribute until the maturity of 15 years on a non-repatriable basis. The NRI PPF account holder cannot extend the tenure of the PPF.

How to Invest/deposit in an existing NRI PPF account?

If you hold a PPF account and have become an NRI during the tenure, you can continue to deposit/invest in the PPF account through your Non-Resident Ordinary or Nonresident External (NRO/NRE) account.

PPF account in case of death

14) What happens if the PPF account holder dies?

In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid to the nominee or legal heir of the deceased person even before the completion of 15 years.

The death benefit from the PPF account is the contributions made along with the accrued interest
The nominee or the legal heir is not allowed to continue the PPF account by making fresh contributions to it.

Documents required for death claim from PPF account:

After the death of PPF account holder, the account needs to be properly closed to avoid legal action. The below mentioned documents are required for death claim from PPF account.

  • Form-G filled by all nominees.
  • Death certificate of the PPF account holder.
  • Passbook of the PPF account holder.

What if the account holder died without a nominee?

If the account holder died without mentioning a nominee and if the eligible money does not exceed Rs. 5 Lakh, then the authorised officer of the account office or the authority specified by the Institution to which accounts office belongs can pay the same to the rightful legal-hire.

Rightful legal-hire can use Form-11 and the following documents to claim the money.

Documents needed:

  • Death Certificate of the PPF Account Holder
  • Passbook or deposit receipt or Original Statement of account
  • Affidavit in Form-13
  • Letter of Disclaimer in Form-14
  • Bond of indemnity in Form-15

If the eligible money exceeds Rs. 5 Lakh, claimant can submit “Succession Certificate” issued by the court along with the following documents to the Accounts office and claim the amount.

Documents needed:

  • Claim Form
  • Passbook or deposit receipt or Original Statement of account
  • Death Certificate of the PPF Account Holder

15) PPF nomination rules.

Nomination is not allowed for an account opened on behalf of a minor. You cannot make a Trust as your nominee.

The nominee can only collect the accrued amount on death of the subscriber but is not allowed to continue contributing to the PPF account, because a PPF account is not transferable.

If nomination is not mentioned in the PPF account, then the balance amount goes to the legal heirs or holders of succession certificate.

According to the Law of Succession, if the nominee is not the legal heir, then the nominee can only act as a trustee for the benefits of the legal heirs or the holder of succession certificate. The nominee cannot resist to handover the amount to the legal heirs.

How many nominees can be in a PPF account?

A person can add four nominees when he/she opens a PPF account. You can add or remove nomination at any time during the tenure period of the PPF(at free of cost).

  • Form-E is the documents required to add a name in the nomination in PPF account.
  • Form-F is the documents required to change the name in the nomination in PPF account.

In case of multiple nominees, you should mention the % of the share for each nominee. If the share % is not mentioned, then the amount will be shared EQUALLY.

Also, if any one of the nominees died, other survivors can claim the amount by submitting his death certificate during the claim. And the share will be shared to the surviving nominees equally.

With the above points, you could have got a clear review of PPF. PPF is an excellent tax saving option . It needs to be part of your tax-saving investment or not, depends upon your overall tax plan and asset allocation for the current year. Do your tax plan and check PPF fits into your tax plan in the current year.

What do you think about investing in PPF? If you have any queries about this article let us know through the comment section.

To have a tax plan and investment plan completely in alignment with your financial goals, you should have a well thought out financial plan. If you are really interested in creating a personalised financial plan, then I would firmly suggest you test-drive our services by opting for

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129 thoughts on “Public Provident Fund |15 Things you may not know about PPF”

  1. My father was account holder of PPF account in SBI. Now he is misplaced since last three months. His closing balance was Rs.10 lac (+) as on 31.03.2021.
    Kindly confirm how his nominee (my mother) calim the money ?

    1. “In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid to the nominee or legal heir of the deceased person even before the completion of 15 years.

      The death benefit from the PPF account is the contributions made along with the accrued interest
      The nominee or the legal heir is not allowed to continue the PPF account by making fresh contributions to it.

      Documents required for death claim from PPF account:
      After the death of PPF account holder, the account needs to be properly closed to avoid legal action. The below mentioned documents are required for death claim from PPF account.

      Form-G filled by all nominees.
      Death certificate of the PPF account holder.
      Passbook of the PPF account holder.”

  2. Haiiii, my brother passed away in May 2021 and his PPF account will kutte in 2025. Shall we withdraw the money or can we keep the money in the same account. Yes we will not contribute to this account but shall we get the benefit of interest till 2021 or will get the interest till 2025.

    1. “Hi!
      In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid to the nominee or legal heir of the deceased person even before the completion of 15 years.

      The death benefit from the PPF account is the contributions made along with the accrued interest
      The nominee or the legal heir is not allowed to continue the PPF account by making fresh contributions to it.”

  3. May mother is account holder in ppf. My father is nominee. We are two brother but nominee is one. So can I get full amt..

  4. Ppf account holder, my younger brother got expired. He doesn’t have any kids or even a wife, what would happen next? Or what can I do from my side?

    1. According to Hindu Succession Act, the account holder’s father/Mother/Brother is eligible to claim the amount. The first stepis to get a legal heir certificate.

  5. After the death of the PPF subscriber, can the nominee get the transfer of proceeds to his own PPF account?

  6. I have my ppf account in post office. I want to transfer it in SBI. Today is 12th june 2021. After transfer of account at the end of year 2021- 22 will I get interest for whole year from SBI or only 9 month interest from SBI. Will there be an interest loss during transition period if transfer of account takes place after 5th date of the month?

    1. “The usual transfer process will take up to one month.
      Though transferring of PPF account requires you to undergo the KYC process, the transfer of account will be considered as a continuing account. Hence, all benefits such as interest earned, premature withdrawal, loan facility will not be affected.

      A new PPF passbook will be issued to you and your outstanding balance will be shown as a credit of balance transfer. It is advisable to take a photocopy of the old passbook for record of old transactions.”

  7. In case of extension of PPF account of 5 years block, in between PPF contributor died. In this situation PPF account will closed or not.

    1. “Hi!
      In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid to the nominee or legal heir of the deceased person even before the completion of 15 years.

      The death benefit from the PPF account is the contributions made along with the accrued interest
      The nominee or the legal heir is not allowed to continue the PPF account by making fresh contributions to it.”

  8. Please inform whether any penalty will be levied if PPF account is Prematurely closed due to death of the Subscriber

    1. “Hi!
      In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid to the nominee or legal heir of the deceased person even before the completion of 15 years.”

  9. Is Nominee & Witness is Mandatory while opening a PPF form? Can we add Nominee in future by filling Form E?

    1. No, it is not mandatory to add a nominee when you open a PPF account. Yes, you can add nominee in the future by using the Form-E

  10. Recently SBI paid PPF money to nominee but as per balance on 30/4/2020 though death took place on 18/9/2020. I.e. interest not paid for 6 months on balance as on 31/3/2020 & deposit of Rs.1.50 lakhs on 30/4/2020.

    What is the correct status ? why interest not paid – bank not answaring.

  11. Is there any time frame within which the nominee has to claim the accrued amount in case of death of the ppf account holder?

    1. ” 1) If the PPF account holder’s account matured then the nominee can claim the money at the time.
      2) If the nominee wants to withdraw the amount before the maturity, then they will get 1% less interest.
      3)If the nominee wants to wait till the account mature, then they can wait without investing any fresh contribution in the PPF account.”

  12. If nomination is made in PPF ACCOUNT of Sbi bank, and court has issued a succession certificate in favour of the legal heirs.Kindy note that nominee is not alegal heir, her father is one of the legal heirs as per succession ceritificate issued by court. We have submitted the court order to bank. Now the nominee is claiming the proceeds. Whom should Sbi bank disburse the proceeds. Kindly guide us

    1. According to the Law of Succession, if the nominee is not the legal heir, then the nominee can only act as a trustee for the benefits of the legal heirs or the holder of the succession certificate. The nominee cannot resist to handover the amount to the legal heirs.

  13. My brother expired on 11 sept 20. He has ppf ac in bom and wife as nominee. Ac was matured and extended for further 5 years till 2023. While closing ac, bank told that ac will be closed only after maturity i.e. 2023. Is it true? If yes, what to be done to keep the ac live till 2023? Can we keep ac live for next 3 years after ac holders death? What may the legal implications while closing ac in 2023? Sir kindly advice.

    1. Yes, it is true. But since the account holder died. Nominees don’t have to provide a fresh contributions to the PPF account. As for the closing procedures, you can check out our article.

  14. My mother has a PPF account in post office, she died on 31st July 2020, and her closing balance was around 15 lacs at the end of 31st Mar 2020. I have submitted on 28th Sept 2020, Post office people stating that we will not get any intrest for these 6 months

  15. Hi, my mother in law has passed away. Her ppf has no nominee. My father in law had died earlier. My partner and my sister in law want to withdraw the money. The amount is less than 1 lakh. The bank has asked for warison certificate. What is that? Do they need?

    1. “They mean the succession certificate. A succession certificate will be given by a civil court to the legal heir(s) in case the deceased of the PPF account holder.
      To get a succession certificate, you need to submit a petition to the civil court in whose jurisdiction the PPF account lies.
      You also need to submit the death certificate of the deceased person. The court will issue a notification in newspapers for 45 days and if there are no contestants during that period, the succession certificate will be issued to relevant applicants.”

  16. @Holistic, what if the nominee dies and 6 month later the ppf account holder dies without nominee name. how can the legal heir process further

    1. “Hi!
      A legal heir can claim the proceeds of a PPF account by producing the succession certificate and the death certificate of the nominee. For the procedures, you can check them in the article.”

  17. My Father in law expired with amount more than 5 lakhs in his SBI ppf account
    His son and daughter in law are nominees but are not in india and don’t have any account in India
    Can my mother in law claim this amount?
    Can you pls guide on process and forms to be

    1. A legal heir can claim the proceeds of a PPF account even when a nomination has been made to someone else, by producing the succession certificate. To know about the process, you can check them in the article.

  18. Hi,
    My PPF account is matured. I want to withdraw all the money. But problem is I live in different city and post office PPF amount withdrawal is not allowed here. The Post office people told me to go to my native city where my PPF account branch is. Can it be not possible to send required documents to my native city and my Father can withdraw it?

  19. My PPF a/c is matured on 1/04/2020. I did not credit subscription for the F Y 2019-20. I went to SBI on 5th Sept and requested to accept Rs 50/- penalty and Rs 500/- as subscription for the Year 2019-20. and submitted form E for revival of five years . Bank returned the form saying that the account is matured but irregular cannot be extended and credits and debits are not allowed on such accounts and they can be only closed. this appears against the PPF rules. Please advise what I should do, I want to continue benefits given by Gove in PPF

    1. “You can extend your PPF account with further deposits during the block period of 5 years by submitting Form-3 to the accounts office. But you have to apply before the expiry of one year from the maturity of the account. If you have failed to submit the form within the first year of maturity, then you need to continue your account without any further deposits. Even if you deposit the money, it will be considered as a regular account and it will be refunded without any interest.
      If you are planning to extend your account after maturity, then you can withdraw 60% of the money in one instalment during a block period. Or more than one instalment in different years but not exceed one withdrawal in a year.”

  20. My father passed away recently. While our mother still lives in India, my siblings and I are NRIs. Because of COVID and her age and health, my mother hasn’t been going out at all and hasn’t been able to inform the bank where my dad’s PPF is about his demise. Is there a deadline by which the account has to be closed? And does interest continue to be paid until the account is closed?

    1. “Amount in a PPF account will continue to earn interests as per the terms even after death of the subscriber until the amount is claimed.”

  21. Sir,
    I am an employed senior citizen with a taxable income. Can i claim deduction under 80c if my adult son has gifted the money into my PPF account?

  22. Sir please guide what happens when a PPF holder died and nominee person claims for the same ,I want to know what interest rate paid after date of death of holder PPF rate OR post office saving rate.
    Please guide

  23. In case of no nominee declaration, if the PPF account holder is deceased and accrued sum is 20 lacs (more than 5 lacs), what happens to the PPF sum?

    1. Since the ppf money exceeds Rs. 5 Lakh, you need to submit “Succession Certificate” issued by the court along with the following documents to the Accounts office and claim the amount.

      Documents needed:
      Claim Form
      Passbook or deposit receipt or Original Statement of account
      Death Certificate of the PPF Account Holder

      1. In case of Inestate death of PPF Account holder. No nomination mentioned in the account. No will exists. The amount is above Rupees Five Lacs. The legal Heirs are Mother,Wife,2 minor sons.

        Alongside all the other documents can the Surviving Member Certificate issued by The SDM be considered instead of the Court’s Succession Certificate / Legal Heir Certificate / Letter of Administration.

        We basically dont want to go to courts…Can Surviving Member Certificate from SDM and affidavits of all legal heir suffice.

        1. “If the ppf money exceeds Rs. 5 Lakh, then they need to submit “Succession Certificate” issued by the court along with the following documents to the Accounts office and claim the amount.

          Documents needed:
          Claim Form
          Passbook or deposit receipt or Original Statement of account
          Death Certificate of the PPF Account Holder

          If the account holder died without mentioning a nominee and if the eligible money does not exceed Rs. 5 Lakh, then the authorised officer of the account office or the authority specified by the Institution to which accounts office belongs can pay the same to the rightful legal-hire.

          Rightful legal-hire can use Form-11 and the following documents to claim the money.

          Documents needed:
          Death Certificate of the PPF Account Holder
          Passbook or deposit receipt or Original Statement of account
          Affidavit in Form-13
          Letter of Disclaimer in Form-14
          Bond of indemnity in Form-15”

  24. Hi, My PPF account has matured on 1st April 2020. I plan to close the account and redeem the full amount with interest in the coming week. I want to know if I will get interest for the period of 1st April 2020 to 18 Aug 2020 or will I get the Interest till 31st Mar 2020 only?

    1. Since your ppf account matured, you can close the account by submitting Form-3 to the account office. The accounts office shall allow you to withdraw the amount along with the due interest. The interest rate offered on PPF accounts – currently 7.1 percent – is calculated on the minimum balance in the account between the fifth day of the month and the last day of the month. So you will get till July 31st interest of you close on Aug 18th. If you choose to close by Sep1st, then you will get interested till Aug 31st.

  25. My grandfather died last year, his PPF a/c has around Rs. 8Lacs. Nominee is my uncle. My uncle is not ready to share the amount with my father. Hw can v stop him from claiming the amount from Post office ? Or if he claims from Post office, then how v can claim from our uncle ? Please advise.

    1. Hi Hemant,
      As a legal heir, your father can claim the proceeds of a PPF account by producing the succession certificate even when a nomination has been made to someone else.

    1. Yes, a nominee can be a non-relative person. But according to the Law of Succession, if the nominee is not the legal heir, then the nominee can only act as a trustee for the benefits of the legal heirs or the holder of succession certificate.

  26. Hello I have been made nominee by my father in ppf account. After his passing away in december I claimed over the amount then the post office babus are saying you need to get successsion certificate also for amount greater than 5 lac. Is it true? I have been named nominee by my father

    1. Hi Punit,
      No, you don’t need a succession certificate to claim your father’s PPF amount as you are the nominee

  27. Is there any limit of amount in the account of deceased person for claiming amount by legal heirs without secession certificate of court.

    1. If you are not a nominee but a legal heir, and if the PPF amount does not exceed Rs. 5 lakh, then you don’t need a succession certificate to claim the amount.

  28. In the ppf in my mother’s name, if I put my son (minor) as nominee can my wife be legal guardian and can i (father of nominee) sign as witness?

  29. Sir, my father died on 24 mar 2020, I m nominee in his ppf account… bcoz of covid I m unable to claim his ppf amount due to personal reasons… can i claim it in Oct 2020… if so will interest be cut on it..

    1. “In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid to the nominee or legal heir of the deceased person even before the completion of 15 years.

      The death benefit from the PPF account is the contributions made along with the accrued interest
      The nominee or the legal heir is not allowed to continue the PPF account by making fresh contributions to it.”

    1. According to the Law of Succession, if the nominee is not the legal heir, then the nominee can only act as a trustee for the benefits of the legal heirs or the holder of succession certificate. The nominee cannot resist to handover the amount to the legal heirs.

  30. A ppf a/c has standing instructions to the bank to debit the said amount annually from a savings account with the same bank and during that period death occurs of the a/c holder, then wht will be the status of ppf a/c ?? Can it be continued until its locking period

    1. “Hi!
      In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid to the nominee or legal heir of the deceased person even before the completion of 15 years.”

  31. Hi
    May I know whether interest deposited amount in ppf account will be treated as part of deposit (within limit of Rs.1.5 lacs) under 80 C of IT.

    1. Hi Hara Prasad,

      Interest earned in PPF account is taken into account for 80 C 1.5 Lac limit. Only the contribution you deposit during that financial year is taken into account for the limit calculation.

  32. If an account holder dies unfortunately and he put nominee as his father and account holder wife if he did not mention his percentage share and his father died then no one looks over account holder family but they are 4brothers and 2sisters in his family then for whom that share will be given and what’s the procedure

    1. If the account holder as well as one of the nominee died, then the surviving nominee/legal hire would get the entire share of his ppf investment.

  33. my uncle expired can i continued his ppf account till maturity without any fres investment will i get interest uptill maturity

  34. Hi

    Incase of death of the PPF account holder in the 5th or 10th year , can the nominee continue to hold the account till maturity i.e. 15 years without any fresh contributions.
    If yes , will the account fetch interest till maturity.

    1. “In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid to the nominee or legal heir of the deceased person even before the completion of 15 years.

      The death benefit from the PPF account is the contributions made along with the accrued interest
      The nominee or the legal heir is not allowed to continue the PPF account by making fresh contributions to it.”

  35. If no nomination is made in PPF account of ten lacs how much the legal heir will get if risk happens?

    1. If the risk happens, whatever the balance (principal & Interest) is available in the PPF account can be claimed by the legal heirs.

  36. hi sir, pls guide me..
    PPF account holder(my dad) died on 7th March 2019 having balance 28 lakh and PPF is getting matured on 31st March 2020 (after 15+5 year). After visiting Post office, postmaster asked all documents along with PPF passbook and on 1st Aug 2019 i received sanction letter along with passbook at my address.
    Should i continue PPF till 31st March 2020 or i should claim all deposit? What will be best option as i heard i will get 1% less interest if claim before maturity.

    1. “Hi,
      Yes you heard it right. If you are planning to withdraw your ppf account before maturity. You will get 1% less PPF interest.
      So, it is better withdraw after maturity.”

  37. Pl advice if minor expire of ppf a/c. Can his f/natural guardian obtain the amout Rs 300000 three lakh and what is the procedure.

    1. Guardian can withdraw money partially during the 7th year of opening of the account. Also, the guardian has to make a declaration stating the money withdrawn is required for the use of the minor only.

  38. Sir ppf account is in the of minor in sbi .and amt is Rs 250000.two lakh fifty thousand as minor is expired .please advice can father and natural gardian can take the paymet of ppf account.and what is the procedure
    .

    1. A depositor can make partial withdrawals from the PPF account of a minor. However, only from the 7th year of opening the account. Also, the guardian has to make a declaration stating the money withdrawn is required for the use of the minor only.

  39. I am an NRI and a nominee to the PPF account of my mother. As my mother passed away recently, the PPF proceeds will be transferred to me. I want to know the tax treatment on the receipt of this PPF proceeds. Can I put it in NRE account and treat it as tax free?

    1. Yes, you can get a tax-exempt as the fund you are about to receive falls into inheritance category.
      But, you cannot receive the funds directly to your NRE account, you have to receive the PPF proceeds through your NRO account and then transfer the proceeds to your NRE account.

      Note: There is a maximum limit for fund transfer from NRO to NRE account which is 1 million USD per financial year. You can get more details on NRO to NRE transfer in this article.(https://www.holisticinvestment.in/transfer-of-funds-from-nro-to-nre/)

    1. It is up to you to decide and how much you want to invest.
      If you want, there are many PPF calculators available for you in the google. You can calculate the interest rate on both fixed and variable investment before you decide.

  40. I have PPF account. I initially nominated my wife and later on added my elder son. The bank authorities accepted the same but wrote 50% against each. In fact I wanted a second nominee in case the first nominee is no more before withdrawing the amount.
    In such a scenarion 1) Will the 2nd nominee be in a position to withdraw entire amount or will it be limited to 50% only. 2) Will it be necessary to obtain claim through court by the 2nd nominee / other heirs. 3) In such a case will the 50% amount be treated as “without nomination” and pay out restricted to Rs. One Lakh only.

    1. As per your questions,
      1) Your second nominee can withdraw an entire amount only after your wife’s death.
      2)There’ no need to obtain the court to claim the money, if that person already has a nominee.
      3) As I mentioned above, the living survivor/nominee or the legal hire can withdraw an entire amount.

  41. but if JUST PPF account continued without fresh contribution, and all other fds were transferred to legal heir with disclosure of death of holder to income tax dept. 3 years back.

    then at maturity can it bring income tax inquiry/ scrutiny to legal heir ?

  42. Hello

    Regarding the PPF account status on death of the holder,

    1. In case of death in 16th year of the account, can the account be continued till coming March 31st which is anyway after the date of maturity without extension?

    1. Hi Vishu,

      There is no way to extend or officially continue PPF account after the death of the PPF account holder. However, PPF continues to give interest till the death claim is filed.

      1. Could you guide if and how much tax will my mother have to pay for receiving father’s ppl amount. Also do we wait till the April to claim the amount.

        1. As PPF is tax-free, there is no tax liability. Transmission can take place immediately and need not wait till April.

  43. Can a nominee of PPF be a Non Resident Indian . He is non resident as working out of India for more than 182 days in a financial year.

  44. What is the procedure of calculation of interest in ppf a/c after death of holder and the nominee will claim and the claim is Seattle on 20th day of the month.,can nominee will get interest up to 20th day of the month or previous month

    1. PPF interest is calculated based on the lowest available balance between 5th of the month and end of the month. If it is withdrawn at the 20th of the month, then there will be zero balance at the end of the month. That will be considered as the lowest and no interest will be due for that month. It is better to close the PPF account at the beginning of a month.

    1. No.
      The legal heir needs to close the PPF account within a reasonable period (say 3 months) after the death of the PPF account holder.

    2. In case of death of PPF account holder, the succession certificate of court ,
      is not required upto which amount. Please give reference of rule ( no or chapter or .. ) for SBI.

      1. “If you are the nominee, then you don’t need the succession certification to claim the PPF amount.

        But if you are not the nominee, and the account holder’s investment limit is more the 5 lacs then you need a succession certificate to cliam the amount.”

  45. In case of death of PPF account holder, when the money is transferred to the nominee or legal hire; is there any tax liability (for the hier) on the amount they’ve received?

    1. Hi Abhilasha, Once the claim is applied with necessary supporting documents, the money will be transferred to nominee.
      There is no tax liability to nominee as PPF returns are tax free.
      Regards, Ramalingam

  46. Hello

    Regarding the PPF account status on death of the holder,

    1. Can the account be continued till maturity without further contributions?

    2. In case of death in 15th year of the account, can the account be continued till coming March 31st which is anyway the date of maturity?

    1. After death of the PPF account holder, additional deposit can’t be done. However, it can be continued with existing deposits that will fetch you interest.

      But it is riskier to continue the PPF account after the death of the account holder because a nominee can’t appoint a nominee. In case if the nominee also dies when the account is continued, the claim becomes complicated.

      1. In case of nomination missing in a PPF Account for a amount of approx 34 Lacs…Can the amount be claimed with a Surviving Member Certificate issued by SDM instead of Succession Certificate from the court. If so please quote any proper reference. … Thanks

        1. “If the eligible money exceeds Rs. 5 Lakh, claimant can submit “Succession Certificate” issued by the court along with the following documents to the Accounts office and claim the amount.

          Documents needed:
          Claim Form
          Passbook or deposit receipt or Original Statement of account
          Death Certificate of the PPF Account Holder”

    1. I had 2 ppf accounts in my pan no, 1 is self, & 2 is my minor daughter, my son had ppf a/c in that a/c my wife as guardian and she died on October 2019, can I continue my son ppf a/c as I m guardian is that possible in my case, after her death I deposited 2 times with guidance of bank person , please help me or guide me on my case my email I’d is dasari.saradhi@gmail.com
      Note1. Self (father ppf a/c)
      Note2. Minor ( father guardian for minor daughter)
      Note3. *** my wife was a mother guardian for my minor son ppf a/c, she died October 2019
      Note4. Can I now became a guardian for my son ppf a/c
      Note5. Already 2 ppf a/cs if my son ppf a/c also added it becomes 3rd ppf a/c in my name

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