The Public Provident fund (PPF) still holds as one of the best tax saving and investment plan especially for salaried Individuals. Investment in PPF gives three way tax benefits, (i) Yearly investment exempted, (ii) Interest component Exempted, and (iii) the withdrawal is also exempted. Below are listed some facts about PPF:

After completion of 15years- what is better (i) to extend old account or (2 start a fresh account after closing the previous one

If you close the account and open another fresh PPF account, you have the liquidity for full amount of your account balance, while extending the same account for a block of five years does not give you the same. Thus, a large amount of money gets blocked for five years. Starting a fresh account gives you the opportunity to decide the amount you want to invest with the entire maturity amount at your disposal. This is an important factor keeping in mind the recent interest rate cut.

Number of years a PPF account be extended after the initial 15 years of operating a PPF account

After the PPF account has been in operation for 15 years, it can be extended for duration of five years at a time. There is no limit; extensions can be taken any number of times.

What is the procedure for transfer of a PPF account from one branch of a bank to another branch, or one post office to another post office

PPF Account Transfers Forms are available, you have to fill up the same and submit with the concerned post office or branch.

What is the procedure for transfer of a PPF account from a Bank to a post office

The State Bank of India/its subsidiary will issue an “Account Payee Cheque” or a Demand Draft for an outstation transfer. The “Account Payee Cheque” will be in favour of the transferee Head Post Office along with a certified copy of the ledger and all other related records in original like –
o application for opening the account
o application form
o signature cards and
o nomination forms.
On receipt of the PPF account on transfer with the cheque or draft from the bank, the account will be opened at the transferee Head Post Office like any other new account is opened. The transaction will not be included in the credit transfer journal but will be entered in the list of transactions like other new accounts opened by cash.
Attachment of PPF account
Yes, the PPF account can be attached by the Income Tax and Estate Duty authorities. The PPF act only gives the account holder immunity against attachment under a decree / order of a court of law.

Open an account in the name of a minor

Under the Public Provident Fund Scheme, an individual may open one Public Provident Fund account on behalf of a minor child of whom he is the guardian. It may be reiterated that only one account may be opened in one name. Thus, if a guardian opens an account on behalf of a minor child, another guardian cannot open an account on behalf of the same minor child.

Rate of interest in a PPF account

The interest rate in a PPF account for the year 2001-2002 is 9.5%.

In the event of the death of a guardian, in relation to a minor, should the PPF account in the name of the minor be closed and a new account opened

In such a case, the minor is treated as subscriber. The amount in his/her account does not become payable on the death of the guardian. Under Section 8 of the PPF Act it becomes payable only on death of the subscriber. In case of death of guardian the account of minor remains operative and a new account need not be opened. The surviving natural guardian or a guardian appointed by a competent court may continue the account of minor after producing the necessary guardianship certificate.

In the event of the death of the minor subscriber is the balance in the account payable to the guardian

No, the guardian is not 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.
get a loan or withdraw money from those accounts to which regular subscriptions haven’t been made every year ?
No, because a subscriber who has not maintained his subscriptions in the account as per Rule 3 of the Scheme and has defaulted on his subscriptions in any year, will not be eligible either for a loan or for a partial withdrawal from the account. This will be allowed only if the person pays the subscription arrears along with the default fee.
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