All about Public Provident Fund or PPF

Public Provident Fund or PPF is a great tool to invest not only for tax saving but also the best debt investment product. In today’s post, let us understand this product fully.

Note-We deactivated commenting option for this particular post from readers. If you have any questions, then you can ask the same in BasuNivesh Forum.

Public Provident Fund (PPF) is the scheme floated under the PPF Act 1968 by the central government. PPF is the wonderful product for all who looks for safe, government-backed and tax beneficial investment. Below are the features of PPF.

# Tenure of Public Provident Fund or PPF

Tenure is 15 years. But in reality it is more than 15 years. For example, suppose you opened the account on 5th March 2013 and 15 years will complete on 5th March 2028. But this is not the maturity date of this account. Instead it will be 1st April 2028 (which will be first working day of immediate FY). I tried to explain the same with below image.
PPF Tenure

# Interest Rate of Public Provident Fund or PPF

Current interest rate of PPF for Financial Year 2015-16 will be 8.70% compounding annually. This interest now will change on quarterly base. I will update as and when there is a change in interest rate.

# Minimum and Maximum Investment in Public Provident Fund or PPF

Minimum investment is Rs.500 and Maximum investment is Rs.1,50,000 (Maximum limit raised to Rs.1,50,000 from Budget 2014). Amount invested more than Rs.1,50,000 will not be eligible for interest and for tax benefit under Sec 80C.

But keep in mind that this limit is combined limit of your own account and the account where you are a guardian. Hence, if you have your own PPF account and you opened an account on behalf of your minor kid, then the combined limit for your is Rs.1,50,000 only but not Rs.3,00,000.

# Tax Benefit of Public Provident Fund or PPF

The amount invested in PPF will be eligible for deduction under Sec 80C and maturity  interest is tax exempt. So it is EEE (Exempt during investment under Sec.80C-Interest earned during PPF tenure is also exempt-Maturity amount is also tax-free).

# Who can open Public Provident Fund or PPF?

You are eligible to open only one PPF account in your name.  But if found to be you have more than one account then your second account will be deactivated. You will receive only principal of what you paid. You can’t open PPF in joint holding. But you can open PPF account in your spouse or minor child name.

Only parents are allowed to open the account on behalf of a minor child. If both parents not alive or living parent incapable of acting, then a person entitled under the law is eligible to open an account on behalf of a minor.

Keep in mind that let us say Mr.X and Mrs.Y are married couples. They have a kid named Mr.Z. In this case, either Mr.X is allowed to open account or Mrs.Y on behalf of minor kid Mr.Z. Both can’t open two separate accounts on behalf same minor kid Mr.Z.

# Maximum number of contributions in a year

You can’t invest more than 12 installments in a year. Means if you planned for contribution of Rs.1,000 then maximum contribution you can make is 12. Not more than that.

# Public Provident Fund or PPF is free from any attachement

This account can’t be attached for your debt or liability. So this is totally safest form of investment.

# Where to open Public Provident Fund or PPF?

You can open PPF account by visiting your nearest Post Office or select nationalized banks, now with ICICI bank too.

# How to get more benefit in Public Provident Fund or PPF?

Read my post “PPF-When to contribute to get higher returns?” to know more about the way of calculation of interest and which way of contribution is best.

# When we can get Loan or allowed to withdraw in Public Provident Fund or PPF?

Read my post “PPF-Loan and Withdrawal” to know more about the eligibility of loan and withdrawal.

# What is the penalty if you forget to deposit the amount?

If you forget to contribute the minimum amount in any year then the account will be deactivated. To activate you need to pay Rs.50 as penalty for each inactive year also you need to pay Rs.500 for each inactive year’s contribution.

# Whether NRIs can open Public Provident Fund or PPF?

The notification says “Provided that if a resident who opened an account under this scheme, subsequently becomes a non Resident during the currency of the maturity period, the account shall be deemed to be closed with effect from the day he becomes a non-resident and interest with effect from that date shall be paid at the rate applicable to the Post Office Saving Account up to the last day of the month preceding the month in which the account is actually closed“.

Hence, as per this new amendment, NRIs are not allowed to continue the PPF up to maturity. Their account will be closed immediately once their status changes to NRI from resident Indian.

Now the interesting point in regards to interest payout once you turn to be NRI is “interest with effect from that date shall be paid at the rate applicable to the Post Office Saving Account up to the last day of the month preceding the month in which the account is actually closed”.

This means let us assume your residential status changed from Resident Indian to NRI on 25th October 2017 and Post Office Savings Account interest rate for September 2017 was at 4%, then your PPF will earn 4% interest from 25th October 2017.

# What if the account holder dies?

In case death of account holder then the balance amount will be paid to his nominee or legal heir even before 15 years too. So nominees or legal heirs are not eligible to continue the deceased account. If balance amount is more than Rs.1,50,000 then deceased nominee or legal heir has to prove the identity to claim the amount.

# Whether account holder name in PPF be changed?

PPF can be transferred from one place to another place or among the PPF service providing institution. But can’t be transferred from one name to another.

 # Once your account completes 15 years then what options do you?

a) You can withdraw your whole amount.

b) You can extend for a 5 years block as many times as you wish.

c) You can continue earning interest without contributing or extending the term.

Refer my post on the same “PPF withdrawal rules & options after 15 years maturity“.

Note-Effective from 1st April, 2016, one can close the PPF before the maturity. But this will be permitted in genuine cases like a serious ailment, higher education of children etc,. In addition, if you try to close the PPF before maturity, then there will be a 1% reduction overall amount as penalty. This closure is allowed only to those accounts, which completed minimum 5 years of a term.

1% reduction of interest from a whole amount as penalty for earlier closure is unwarranted. Because it is already set that such closure will be allowed in genuine cases. Then why such penalty clause?

# What if you deposit more than the prescribed limit of Rs.1,50,000 in a financial year?

Any amount you deposit in your PPF account more than the prescribed limit of PPF for that particular year will not earn any interest. Also, this deposit will not be part of Sec.80C limit. Currently both PPF and Sec.80C limits are Rs.1,50,000. So you may not feel the heat of it. But in case the PPF limit kept it as Rs.1,50,000 and Sec.80C limit raised to Rs.2,00,000, if you deposited Rs.2,00,000 into PPF account means the remaining Rs.50,000 will not be eligible for Sec.80C deduction.

Such excess amount will be idle and will be returned to you by Accounts Office to the subscriber. Hence, never try to deposit more than the prescribed limit for that particular year.

# What if you opened two PPF accounts?

Legally you are not allowed to open two PPF accounts. One person must have only one PPF account. Suppose you knowingly or unknowing opened two accounts in Post Office, Bank or one in the post office and another in a bank, then the SECOND account will be treated as an irregular account. Even you can’t open another account if you already have one discontinued PPF account. You have only option to continue it with a penalty and minimum subscription. Such second account will not carry any interest. So in such situation what to do?

The solution is, you have to write a letter to Under Secretary-NS Branch MOF (DEA), New Delhi-1 through the Accounts Office giving detail of each account and request for combining of both accounts.

# Opening PPF accounts in joint names not allowed

Yes, PPF account can be opened either individually or as guardian of minor kid. But PPF account can’t be allowed to open as a joint account.

# What to do when minor kid attains the major of PPF account?

When the minor kid attains the majority, then he will be treated as account holder of PPF but not the legal guardian. Such major kid should submit the revised application form for opening account and nomination form. His signature on the application form will be attested by the guardian who opened the account of the minor or by a respectable person known to the Accounts Office.

# Nominees not allowed to deposit in PPF account after the death of account holder

In case of death of account holder, nominees or legal heirs not allowed to deposit into PPF account. If they deposit the amount, then such amount will not earn any interest and will be refunded back at the time of account closure.

# Loan or withdrawal on discontinued account

Loan or withdrawal will not be allowed on a discontinued account. To avail loan or withdrawal facility, you have to continue the account by paying the prescribed penalty and minimum subscription for the discontinued period.

# When you will get back the amount from your discontinued PPF account?

If your PPF account is discontinued, then you will get the amount along with interest only at maturity. As I said above, even withdrawal or loan facility is not allowed to such discontinued account. You will be allowed to continue such discontinued account only during a tenure of 15 years of PPF account. You can’t activate it after maturity. Such accounts will earn interest up to maturity ONLY.

Keep in mind that such discontinued account will earn interest on every year till maturity on the balance available for each year.

# Opening new account after maturity of existing PPF account

You are allowed to open new PPF account after maturity existing PPF account only if you not extended it. If you extended for another block of a year (whether with or without contribution), then you are not allowed to open one more PPF account.

# Repayment of loan on PPF

I already wrote a detailed post on how and when you can avail the loan on PPF at PPF-Loan and Withdrawal and  15 Rules of availing Loan against PPF (Public Provident Fund). You have to repay the principal within 36 months. You can repay the loan either in a single lump sum or in installment if you not pay the principal within 36 months, then the interest rate on such loan will be 6% instead of 2 %. Such interest will be automatically debited from PPF holder’s account.

In case of death of account holder, the it is the responsibility of nominee or legal heir to repay the interest rate.

# Nomination facility of PPF account

You can nominate one or more nominees to your PPF account. However, nomination not allowed to an account opened on behalf of minors. You can change or cancel the nomination at any point of time during PPF account period. It is purely free service. There is no cost to this process. If the nominee is minor then the account holder can appoint the guardian. You can’t nominate a trust to your PPF account.

Also after the death of account holder, PPF account will not stop to earn interest on such balance. The interest is payable till the end of the month preceding the month in which payment of the deposits is made to the nominee/legal heirs of the deceased subscriber.

Nominees are not allowed to continue the account. However, they are free to open the account on their own name. Because PPF account is not transferable.

The nominee does not get the right of ownership. He is only authorized to collect the money on the death of the subscriber and keep it with him as a trustee for the benefit of the persons who are entitled to it under the law of succession. Such payment to nominee does not deprive the legal heirs and holders of succession certificate to receive the amount in the hands of the nominee.

The account holder has to mention the % of share in case the nominee is more than one person. If such % is not mentioned then the amount payable will be shared EQUALLY among all nominees.

# What if in case of death of guardian or minor kid?

  • In case of death of guardian-As per PPF rule, the guardian is not the account holder of PPF but a minor kid is treated as an account holder. Hence, in the event of the death of a guardian, the account will not CLOSE. Hence, surviving natural guardian or a guardian appointed by the competent court may continue the account of minor after producing necessary guardianship certificate.
  • In case of death of minor kid-As I said above, minor is the actual account holder. Hence, the account will close. Guardian of the account will not claim the amount. But he acts like a facilitator for transfer of fund the legal heir of a minor.

# Whether women can change the name after her marriage to PPF account?

Women are allowed to change the surname after their marriage. For this, the woman PPF account holder must give a written request and the evidence of marriage

# Attachment of PPF account under any decree or order of court and Income Tax Department

As per Section 9 of PPF act, PPF Account can’t be attached under any decree or order of the court to recover any debt or liability incurred by the account holder. However,  Income Tax Authority is free to attach and recover the dues of an account holder.

# Tax Benefits for the deposit in PPF account after the maturity of 15 years

You will enjoy the same tax benefits even after maturity also ONLY if you exercised the option of extending it with a contribution. However, if you not closed the account or opted for an extension without contribution, then any contribution made to such accounts will be eligible for tax benefits under Sec.80C.

# Tax Benefits under Sec.80C

You will enjoy tax benefits for the amount you deposited into your, spouse and kids (MINOR OR MAJOR) up to the specified limit of Sec.80C.

Interest earned yearly is tax-free. Hence, it is not considered as an investment for a fresh claim under Sec.80C. Also, note that the loan repayment towards PPF account will not form the part of Sec.80C benefits.

# Power of Attorney facility not available for PPF account

The Power of Attorney can neither open the PPF account nor operate it on behalf of an account holder.

# Cheque or DD realization date is the deposit date

In case of deposit through cheque or DD, the realization date of an amount will be treated as the deposit date. Hence, let us say you deposited the cheque or DD into your PPF account on 4th April, 2016 but the amount actually realized on 10th Apri, 2016 means the deposit date for interest calculation will be not 4th April, 2016 but 10th Apri, 2016.

Refer our other posts related to Public Provident Fund or PPF.

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662 Responses

  1. This page is really informative. After reading blog followed by Q&A, I think I don’t have any further question to ask.

    Great job Basavaraj Tonagatti sir!!

  2. Sir,

    I have a general question for PPF account.

    can i deposit different amount in different years in my PPF Account?

    for example I opened my PPF Account with INR 2000 in a month. Now can I deposit amount like as follows:

    1st year 24000
    2nd year 36000
    3rd year 24000
    4th year 48000
    5th year 72000

    is this flexi manner is allowed in PPF Account.??

    1. I will be 60 years of age in November 2016 and retiring from my bank’s job. Now want to open ppf account in the next financial year to save 150000 as per law. Whether it is right to open ppf at this age and save tax or there is some other mode also to avoid long term investment. Kindly guide .

  3. Dear Basu,

    I’ve forgotten to make PPF payment for FY15-16. I understand that one is required to pay a minimum of Rs.500 plus Rs.50 as penalty to re-activate the account.

    My question is: Can I pay the maximum of Rs.150,000 today (28-April-16), and claim deduction for the same in FY15-16; AY16-17?


  4. Hello Sir can u pls advise I have a PPF account since 2009 when I was Major, now my mother is 65 years of age and is retired, can she deposit money in my PPf account now and claim tax exemption , if yes , then how does she prove that she deposited money in my account and can she withdraw the 50% amount next year as My PPf account has crossed 7 years . please guide

    1. Hi Thank you, please provide me your contact number, my number 9980492019, when I enquired at post office and with CA they declined saying tax benefit will be given to person on whose name ppf has been opened

  5. Hello Sir, I m a govt. servant. i want to know ki maine shadi se pahle PPF nominee apni cousin ko bnaya tha.
    kya shadi ke bad office me marriege regarding intimation krne pr already PPF funds me husband nominee ho jate hai??? JBKI MAINE NOMINEE ME APNI COUSIN KA NAAM HI RAKHA HAI……Please help me….

  6. Hi – I have a query .

    Can I open a PPF account now within 31 March 2016 to avail 8.70 % interest .After 1 April 2016 , it will be 8.10 % interest. Please advise

    1. Priyanka-No. Because the 5th date of March 2016 is already over. So even if you open the account before 31st March and deposit the amount also, the interest will be of the new changed EPF rates.

      1. Thanks Basu 🙂 So do you recommend I open the account between 1 April to 5 April 2016 ?

        Warm Regards,

  7. Is there a way to invest total of 4.5L/year in all the 3 PPF accounts: Self, wife, and minor child?

      1. Hi Basu, yes, your question in response is open for discussion, however, I would still like to get an answer for my question, if possible. Thanks a lot!

        1. Rahul-An individual including the accounts of guardian is allowed to invest the maximum of Rs.1.5 lakh. So overall you and your wife can invest the maximum of Rs.3 lakh, but not Rs.4.5 lakh.

          1. Thanks a lot Basu! So, in your opinion, how should we go about investment planning of a minor child? Or in other words, how much do we allocate in different asset classes assuming general needs such as education, marriage, etc. Appreciate your response.


      N K SINGLA

      1. MY VIEW ONLY

        N K SINGLA

        1. Singla-” Any individual may, on his own behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund (thereafter referred to as the fund) any amount not less than Rs.500 and not more than Rs.1,50,000″. So, one can invest a maximum of Rs.1,50,000 in his own and his kid’s account. Wife’s account is considered separately and it is treated as an individual account. Don’t try to combine it. Yes, for Sec.80C benefit, you can combine all of their investment, but again there too the maximum limit is Rs.1,50,000.
          If you deposited with breaking the limits prescribed in PPF law, then you will not eligible for Sec.80C benefit too.

  8. Since the maximum investment in PPF is 1.5 lac.
    For any one considering the safe investment in such scheme If one wants to go for it and invest for childrens ,in case there is a girl child it would be good option to invest in Sukanya Samriddhi for girl and get the extra max limit by investing in PPF for boy

    Kindly advise

      1. Sachin
        What fate you expect for SSA if this Govt falls

        Next what is the possibility of taxation of PPF under EET in future

  9. Hello Basavraj,

    Could you please suggest me can I open New PPF Account in April 2016 for either me or my kids/wife for below case and continue till 15 years:-

    Note: Till today Only I spent time in US.

    Case :–

    As per My Passport Details My US Spent Time :
    30Jun/2014 – 08Sept/2014
    23Nov/2014 – 08Nov/2015
    08Dec/2015 – 13Feb/2016

    Again I have plan to go US end of April 2016 for few years with my entire family but would keep on visiting India for 1 or 2 month once in a year. And after few years like 3 or 5 years I will permanently come to India.


      1. Thanks Basavraj,

        But for financial year 2016-2017 I would not have NRI status because as per the another rule In previous financial year 2015-2016 I spent 72 days in India and last 4 year year I also spent more than 365 days in India.
        Could you please confirm this point.

        And also My Wife and Kids Never visited in US, Can I Invest for my Wife or Kids?


        1. Bhagwati-Yes, in that case you can be considered as resident Indian. If your wife and kids residential status is Indian, then you can open the account in their name also.

  10. hello sir

    how to transfer SBI PPF fund online.

    my ppf and saving account is same branch and i try to create inter bank Beneficiary but not create found error not create same account beneficiary

    help me how to solve problem

  11. Hi

    Good day

    Can you please advice for the below query

    Is it advisable to open PPF account for my retired govt employee mother who is 75 years old and whose earning is coming in taxable slab now , also can she open a PPF account is there any age limit on the higher side.

    many thanxs in a advance


  13. My banker by mistake has withdrawn 150000rs from ppf instead of 1500000rs. Can this mistake can be rectify

  14. Dear Basavaraj,

    I already have a PPF account since last 15 years and have deposited 100,000 INR to my account already for the financial year 2014-2015. I understand that this 100,000 INR will considered towards my tax deduction. I have a wife (not working) and a 2 year old son (US citizen). I am planning to open a new PPF account (either for wife or kid) so that I can deposit another 50,000 INR to that PPF account.
    My question – Am i eligible to show 50,000 INR (deposited to my wife’s or kid’s PPF a/c) towards my tax exemption during this year. My aim is to invest 150,000 into PPF for this year. Please advise on whose name should i open a PPF account so that it can be considered towards my tax exemption.


    1. Akhil-How can your 2014-15 deposit of Rs.1,00,000 be eligible for tax deduction in current financial year? The current limit is Rs.1,50,000 in PPF per financial year. You can still deposit in your own account.

  15. I understand that we need to pay 550/- for each year that we miseed the PPF investment : 500/- as minimum subscription and 50/- as penalty. But, I wanted to know whether this entire 550/- becomes part of the principal amount or is there a Debit of 50/- from the PPF account towards the Govt account as penalty?
    Or do we have to deposit the 50/- penalty in some specific government account?

      1. Ok. But, the tricky part of the situation is that there is no mention of any penalty/debit of ?50/- in my PPF passbook. I failed to deposit the minimum of ?500/- for four consecutive years from 2010-11 to 2013-14. Then in 2014-15 I made a one-time deposit of ?40k. I also shifted my a/c to another branch. After this when I received the printed entries in my passbook, the ?40k was added to the pre-existing balance and I received the annual interest on 31.3.15. There was no mention or debit record of penalties or arrears in any way in the passbook. The only entries were cash deposit & annual interest. That is why I fail to understand the procedure of penalty collection and have sought help from you!! The officials at the bank branch have no clue and the bank helpine says they have no info on PPF! Please help!

  16. Hi ,
    I opened a PPF account on my wife 4 years back, every year I am contributing some amount in that account. From this year onwards my wife started working, and she decided to invest in the same account. So my question is
    Both husband and wife can contribute to same account and both can claim tax exemption as both are paying from their salary money?

    1. Sharan-You can do so. But make sure that you have proof to show that it was from your own income and wife’s income for showing purpose to IT. Also, you must show that you gifted the amount to her to invest in PPF. For this a simple gift letter is to be prepared to avoid future tax issues.

      1. Thanks for the reply Basvaraj, But wife is going to job and she is also filing returns separately. So iam not gifting any thing. So still we can do right? Pls let me know

  17. Hi,
    By mistake i invested 1,60,000 (more than 1.5L) in PPF via online. can i request SBI to deposit the excess 10K back to my savings account (as excess amount will not fetch any interest).


  18. Hi,

    I am a salaried person and coming under 20% of tax slab,
    I am married, my spouses don’t work and we have 2 kids,

    2010: I have opened SBI saving account for self and wife +self as joint by proving my PAN number to the SBI branch and they opened both the accounts,
    2014: I opened an SBI saving account for my 2 kids by proving their aadhar and my PAN number and linking as guardian
    2016: January this Month, I opened three PPF accounts, i.e. Self and 2 kids and provided self PAN details for all of them and it is documented into PPF account,
    Further, I deposited 1000×3=3000/- and also shown this into 80C as part of an investment..

    Now the situation is, since I am guardian for 2 minors PPF account that are linked to me to my PAN as well..
    Hence, I cannot invest more (as per the SBI info, together, I can invest up to 70K into all PPF accounts, self and the accounts I am guardian),

    I am planning to apply for a PAN number for spouses and kids in the month of April 2016 (If I do it now then I might need to fill their income returns as well), So once My wife and kid gets their own PAN number in the month of April 2016, then my spouses can operate her PPF and can be Guardian for both kids PPF accounts as well. (So, I am planning to opt for a PAN number for my spouses + 2 Kids and shall make my wife as Guardian for 2 kids PPF account)

    The question.
    1. Will SBI bank remove me as a Guardian and add my spouses as a Guardian for these two kids PPF accounts once she and the kids gets their own PAN number?
    2. Since I have already shown I am a guardian for these two kids PPF accounts and claimed tax benefits FY2015-16..
    Will it affect future tax filing, once I change the guardianship (make spouses as Guardian for kids accounts), will it affect in any way as I have shown kids PPF into my tax filling already?
    3. I want to operate my PPF account separately and wish my spouses to have her own PPF + her to act Guardian for kids PPF, so can this be done now?
    4. Basically, I want to operate self SBI saving and PPF account without guardianship to another PPF account, so that I can invest a maximum in PPF account and can avail tax benefits,?
    5. Also, I can fund into spouses PPF + Kids PPF account so that we can make more savings, and the investment will be mapped to my spouses PAN account as guardian,
    Since she is not earning then not mandatory her to fill the income tax (For sure I won’t be claiming these three PPF account savings into my savings under 80C)
    .. Is it possible?
    6. I also believe to keep some funds into spouses and kids saving accounts and further deposit them into small fix tenure to earn more interest and will take care that interest won’t cross 10K PA,
    Hence, not mandatory her to fill the income tax.. as the earned interest is less than 10K and for sure she is not working no other source of money.. is it possible?

    Your expert advice will help me.. Please let me know as mentioned

    Thank you in advance

    1. Pradeep-Forget about all these. Think for a while investing in PPF per year depends ONLY for tax saving purpose or to meet your financial goals. If your answer is to save TAX, then you are doing wrong. However, if your investment is linked to goal, then let us discuss further.

      1. Hi Basavaraj Tonagatti,

        Yes, to answer

        1. Self contribution toward 80c (Company PF + school fee + LIC) is coming around 1.40K so I can still contribute 10K into self PPF account and it can he helpful achieving 1.50K investment, thus I do not wish to be guardian for my kids PPF as my contribution into their account won’t help me..

        2. If my spouses can be guardian for both their account so in terms of investment, I can contribute into their PPF’s account (together, spouses + 2 kids = between 70k up to 1.50 PA) and it won’t be linked into my PAN as it will reflect into guardian (spouses) account.

        So Idea was not to link kids PPF account with my PAN or self investigate hence wish to make spouses as guardian for kids ppf account

        I am not sure if I am answering correctly, sorry being first time I have few confusion,

        I hope if you could provide your guidance for about points whether it is possible or not and expert advice.

        Thank you for your time answering and helping here,

        1. Yes the purpose is to investment and to make it more easy, as I explained in first post, so your help will greatly help here as what is possible and not.

          1. Thank you and appreciated your time answering maximum questions here, very few do that..
            Better for me to visit the SBI branch and get the clarification instead waiting for the answer as the time is running, Thank you

            1. Pradeep-Sorry for missing the whole chain of reply. I answered your doubts. If you still feel I am not worth and SBI people can handle your query in better way, then suggest you to take advice from them.

          2. Pradeep-If your purse is investment, then think twice. Because it is debt product. You can expect around 8% return in long run. Whether you can sustain in beating inflation for your long term goals? You must diversify into other assets to get more than this.

    2. Pradeep,

      well, just an observation on query,
      For PPF accounts (including your own, Spouse and Kids), the max amount that can be used for Tax deduction is 1.5 Lack for each earning member. If you do otherwise and invest more than 1.5L, but you end up getting no Tax deductions and locking up your capital for 15 Yrs.

      On the multiple saving account interest, if your spouse is not working, from legal perspective any income/interest earned from spouse account/kids account will be clubed to your earnings (ie considered as your income) and taxed accordingly.

      So, take the decision based on what your are comfortable with.

      Having said that, you have every right to agree to disagree on what I said.

  19. Dear Sir,
    I have open my sbi ppf A/C Rs. 2000 IN 30 March. 2015. but this year i have deposit Rs. my question is how is it possible to deposit last year balancing amount Rs. 148000 is deposited this year (31 march 2016).


  20. Hi sir,

    By mistake i transferred some amount in my father’s ppf account instead of transferring to my mother’s ppf account.
    can i roll it back and transfer the amount to my mother’s account.

  21. Dear Sir,

    Is the amount deposited in PPF is decided when you are opening the account?
    I want to know is is mandatory to deposit a fixed amount in PPF Mothly/Yearly ?
    As in can i submit anytime whatever extra amount available with me.

    1. Abhinav-There is no such restriction in PPF. But make sure that the maximum limit does not exceed Rs.1,50,000 and minimum must be Rs.500 in FY. Within this limit, you are free to invest.

  22. Hi…

    I opened my PPF account 3 years back in SBI. But in PPF nominee form (FORM -E), I mentioned my nominee name and S/B account number as per bank instruction that time. Kindly let me know whether my nominee will get money after my death from PPF. I have S/B account in same SBI branch.

    1. Anindya-Nominee name as bank account number? I think they said so to map the account and they might registered the same nominee of your savings account. Check once again with your Bank.

  23. Hello,

    I have a doubt. I had opened a PPF account with IDBI bank in 2012 and deposited Rs 10,000 in it. However due to some personal reasons I could not continue to deposit any more amount in the same account. Post that I went to pursue higher education. Now I am currently in working in Bangalore.

    My doubt is whether I can move that PPF account from chandigarh to any bank like ICICI or SBI in Bangalore ? I will not be able to visit Chandigarh any time soon. I think I am not allowed to open a new PPF account either. Please guide me how should I proceed in such scenario.

  24. Hi Sir, I need to know can I open PPF account with my wifes account as a joint holder in ICICI.
    do I need to be primary holder coj I want all taxes exemptions on my name.

  25. Sir,
    I Opened PPF in a post office and i invested 10000 first on dec 2015 and i can claim for tax deduction for this 10000 this march…now if i invest another 10000 next year will i get 10000 tax exception next year or the cumulative 20000??kindlyhelp

    1. Aneesh-No, when you invest Rs.10,000 next financial year, then you can claim Rs.10,000 ONLY. Because whatever you INVEST during the FY will be considered for deduction but not the total accumulated amount.

  26. Hi,

    I have PPF account. My wife want to deposit some amount in my PPF account. I just want to know whether she can claimed the amount as tax saving for her income.

    Please guide me.

  27. Dear Sir,
    Thanks for giving such a nice description on PPF. I though have one question regarding PPF.
    In LIC we can provide future payment declarations when Tax Investment proofs to Company are submitted if we have to pay the amount in Future in the Months of Jan to March.
    Can the same be done for PPF or the provisions for giving declarations are only for the amount we have already paid in the PPF account for that financial year.

  28. Hi ,

    i have a query. what will happen if we deposit more than 12 times in PPF account through netbanking. will it get reversed or credited to PPF account?

  29. Dear sir

    I have a PPF A/C in SBI branch since June 2011. From this time nominee of this A/C is father.Now at present after my father expire (expire on 09th Nov. 2015) I wish to change the name of nominee with my wife
    Please tell me the procedure to changed the nominee name .


  30. Hello Sir,

    First Thanks to you for sharing all this information.

    I have one question, that, “My Wife has transfer Money into PPF account instead of saving account is any way by we can request to bank to transfer that money to saving bank account.

    She transferred from Axis bank Account to SBI bank Account(PPF) instead of saving account by mistake.

    Thank you Very much in advance.

  31. Hi,

    I had opened my PPF Account with ICICI Bank and after marriage changed my surname in that by providing marriage certificate. But now, I have decided to continue my all documents ( PAN Card, Aadhar etc) with maiden name.
    So, I have a query regarding PPF, is there any procedure to change the surname back to my maiden one or I have to compulsarily change my all documents ( PAN Card, Aadhar etc) .

    1. Aradhna-Let me know the reason for going back to your maiden name (If it is personal then don’t share). Yes, to do the changes, you have to follow the same process. Hence, update the name in PAN Card and Aadhaar etc.).

      1. Hi Basavaraj,

        Thanks for the reply. I didn’t understand the response. There is no personal reason, just I didn’t changed my any other document ( PAN , Aadhar etc) and want them to be in maiden name just to avoid hassle to change everything. So decided to remain as it is ( i.e. in maiden name). I wanted clarity, that whether i can change my PPF account sur name or not?
        Or can I continue PPF with married surname and all other documents in maiden surname?

        1. Aradhna-Better to stick to one format. Either all in maiden surname or your married surname. Otherwise one day it may create the problem. Because taxation will be based on your PAN and other things match to that. Updating name in PPF can be done at any point of time. But make sure which one you want to continue.

    2. Hello Sir, My I have paid My Wife’s LIC & PPF Premium but she haven’t changed name , Now We have marriage Certifictae, how can I claim That Invetment Under 80 C. Please Advice.

  32. Hi Sir,
    If I open a ppf account with a fixed amount of 1000/month, Can i change that amount..? Can I deposit 1500 or 2000 rs in next month..? Can i vary deposited amount?

  33. Hi Basu,

    Really thank you for providing the valuable information on PPF. I have gone through all the queries but I got some confusion on few responses. hence, can you please help me on below 2 questions:

    1. Can I contribute to my wife’s (housewife) PPF account ?
    2. Can I contribute 1.5L to her account so that total investment in a year will be 3 lakhs (mine and my wife) or it will be limited to 1.5 Lakhs ?
    3. I know I can max. claim 1.5 Lakhs in 80C limit but can I invest for getting more returns from both accounts ?

    Thank you !!

    1. Bhupendra-1) YES. 2) You can contribute like that. 3) Do you feel investing in PPF too much a good idea? Treat this product as BEST DEBT product, but not a BEST product which can beat inflation and create wealth. Thinking too much on tax saving part may sometime ruin your financial life. Personally I still don’t own PPF.

  34. Hi Basu,

    I am planning to open PPF account for both my minor kids. Me and my wife both have a separate PPF A/C. We both are individual IT assesses.
    Am I allowed to deposit 1.5 lakhs each in my account as well as both my kids PPF accounts?

    1. Mayur-Overall limit of PPF investment for you and kid’s account is Rs.1,50,000 ONLY. If you want to invest more, then I suggest you to act as a guardian for one kid and wife for anotehr kid. Including you and a kid’s PPF the limit is Rs.1,50,000. Same is with your wife (including her and kid’s account).

  35. Hi Basu,

    Its a nice artical but still having few doubts:

    1. PPF term is 15 years but can be extend for 5 years block. How much time we can extend it for 5 years? In the 5 years of extend time do we need to add amount (invest) like normal plan?
    2. The loan we can take against PPF with 2% more interest of current PPF interest. How much % of amount we can get in loan. How we can repay the loan amount.

    Thanks in advance.

  36. First of all I would like to thank you for the valuable info shared by u.
    1 basic query I have is, If I want to pay my PPF yearly. do we have chance to vary the amt. for annual contribution.
    ex. for 1st yr my contibution may be 75k, next year may be 80k or may be less as 60k. is this possible ?

  37. I presented a cheque of axis bank for 50000/- in my ppf a/c at SBI on 3rd September.
    Said amount got debited n 5th september in my axis bank.
    But SBI is showing it as credited n 8th of september.
    Will get interest or not for the month of September.

  38. Hello Sir, The comments and your replies have answered many of my questions. Thanks for that. Still I have one doubt which needs clarification. I am doing some online work and hence my income varies from month to month. If my employer deposits a lump sum of money say 1 lakh to my PPF account directly through third party fund transfer, whether he/she will be taxed for that? Whether TDS is applicable for him/her?

    Your reply is very much appreciated. Thank you.

      1. Sorry, I mean from his savings account to my account. His bank is different from my bank. So I think he can add me as Inter Bank beneficiary and transfer the funds to my PPF account. My question is that whether he will get into any tax problem due to this. Sorry, my knowledge is zero in this. So this silly question.

  39. Hi Basu

    1.) Can I open 3 PPF accounts, One for myself, one for my wife and one for my mother?
    2.) My wife and mother both are hours wife so I am the one who will be depositing the money in all the 3 accounts. Can I directly transfer the money from my saving account to my mother PPF a/c and my Wife PPF a/c? OR they need to open their saving account then I need to transfer the money to their saving accounts and then they need to move the money in the PPF accounts?

      1. Hi Basu

        Thanks for your quick response. One of my friend is doing the same thing and bank (SBI) is accepting the fund. I think I can also go for the same if bank accepts the cheque?

        Also his mother and wife both are filing ITR and showing this amount in their Income, for mother it is rent (HRA) and for his wife he is just transferring the money without any reason and saying he can deposit the money in his wife’s account ………is that fine ?

        and he is saying via this approach he is saving income tax on interest ( Interest on 4,50,000 amount) .. is this correct?

        Also Can i deposit cash in PPF accounts?

        1. Shriram-If bank accepts then go ahead. I think your friend’s MAJOR approach is to save tax rather meeting a financial goal with proper invesmtent. If you too follow the same then go ahead. In my view, you have to think about tax effeciency, but it does not meant that you must select a product which not useful for you or can’t match your financial goal.


  41. how many times a person can open a PPF account after maturation one first , in the whole life span.

  42. Last year, my wife’s contribution in instruments allowable u/s 80C exceeded 1.5 Lac while mine fell short of 1.5 Lac. Can I use some of the contribution in excess of 1.5 Lac made by spouse towards deduction for my tax return purpose.

    Essentially, I want to know if I can claim tax deduction on contribution made by my spouse from her bank account to her PPF account?

      1. Thanks for clarification. What sort of proof will i need to keep for claiming this deduction.

  43. Sir

    Please let me know if I open PPF in my Minor child’s name , myself being guardian am i eligible for the Tax deduction for the amount I Deposit to this account.

      1. Sir I m opening only one account and it is in my child’s name…can u name under wch section of IT rules i can claim this benefit???

  44. Hi Basu sir,

    I am working and my wife is self employed and we are blessed with two kids. Can we have total 4 ppfs accounts (1 for me, 1 for spouse, 1 for 1st kid and another one for 2nd kid). we intended to deposit total of 3 lacs in all four accounts (Like 75K in each account).


    1. Deepak-You can have so. But you and your minor kid’s account combine investment must be up to Rs.1,50,000 only. The same applies to your wife’s and another minor kid’s account.

  45. For salaried class , if i open a PPF account with annual ( FY ) investment of 150000 will it earn interest if i have EPF which already has a deduction of 150000 against PF in my salary ?

  46. Dear sir,

    I had taken 80,000 loan against my PPF account recently from SBI. tHE ppf account showing the amount after deducting the loan amount. Inquired with Bank people they are telling that they are also not aware of full procedure regarding the loan disbursement and interest on loan and repayment system.

    Please explain in this regard

    1. Srinivasu-The interest will be 2% more than the prevailing interest rate of PPF. The balance is showing such, because this amount only accrue the PPF interest. You have to repay this loan within 36 months and interest you can pay it after the principal repayment.

      1. Is it correct that only the deducted amount making interest as i am taking loan against ppf as a security to the bank and i am repaying it with 2% more interest also. it is not make any sense i think so. please explain

  47. Thanx sir for your reply.

    Yes I want to take part of the PPF amount around 10 lac to my account from my mother’s account as the amount is huge I cant keep in my mother account only. so if I take to my salary account it will be taxable?

    Thanks in advance.

    1. AB-It is not taxed to you too. Because anyhow it is not taxable income for your mother. Also, your mother transfering the amount within family (to you). Hence, it is not taxable.

  48. HI,
    My father expired recently and nominee was my mother. we got the entire amount to my mother account.
    Now it is in her savings account,is the amount taxable.?
    I am his daughter and working,if I take the part of the amount to my salary account is it taxable(interest\principal)?

    please advise.

  49. Hello Basubhai
    I am paying full PPF subcription for me and for my wife individually. I am very fond of PPF. Can i open my parents account for new PPF. Father and mother are 68 yrs old, healthy. Financially i will operate account. They have money in FD, But tds is problem. They dont require money for themselves. I am handling all financial of them. I want to invest for better return. Suppost in future sad demise happens, what will be the procedures for ppf maturity ?? After expired of primary account holder, can account be continued by nominee and can earn interest and can pay subscritption ??

    1. Sukumar-Investing so heavily in a single product is not wise. Also you have to consider PPF as a debt product and allocate funds or invest in it for goals which matches to maturity of PPF. Blindly for sake of tax saving of 8.7% return not works out well. If PPF holder dies then the account must be closed and nominee can’t continue the account.

  50. i have deposit more than 80c limit in ppf account by mistake ,what is the solution i want extra deposit amount will count in next financial year.thanks

  51. Hello,

    I opened ppf account last oct 7, 2014. I got some interest for that. Now, when is the correct time to pay ppf amount for this year ? Also, what difference does it make when I deposit within 5th and after 5th. Will there be a deduction in interest ?

    Please let me know.


  52. Hello Sir,

    The yearly investment amount which we mention while opening a PPF, Do we have to invest exactly the same amount every year till maturity or that amount can vary?

    Example: Last year I have opened a PPF account with 1 lakh yearly investment, Can I put 1.30 lacs this year in that?


  53. Sir,

    My friend who is reside in delhi but he want to open the ppf a/c in my city where i m presently reside which is located in rajasthan, can i open the ppf a/c with fullfill the all kyc document. plz suggest. what i do in this case.

  54. Sir,
    If out of misunderstanding second PPF A/c is opened and within 2 months of opening, it is known that second PPF a/c is prohibited what should be done to close or deactivate the second a/c keeping in view PPF a/c can not be closed before 15 years.
    Kindly guide.
    Sanjay Azamgarh

  55. hi,

    My mother deposited some amount in ppf, it is going to mature this year i.e., 31st august 2015, value is 160000, my mother expired 10 years back, as a nominee, how i need to claim that amount & i have a bond for that.

    please suggest forward….it would be appriciate.

    Surya Prakash

  56. Dear Mr Basavraj,
    Pl. help me in the following case – A friend of mine expired recently leaving a ppf balance of about 5 lacs , and 3 nominees registered with concerned post office , wife , son and married daughter .Post master is insisting that all 3 nominees submit claim together in form g . This is not practicable as daughter can not come there ti file claim with other nominees till next few months , being located at a far away place . As share of all 3 nominees is equal as per nomination ( no specific % share is assigned to individual nominee ) , first 2 nominees should be permitted to claim their share , independent of claim by the third nominee which could take place later .Please advice as to how to convince postal deptt . Can you pl refer some rules / circular ? Regards

    1. Din Dayal-Post Officer is correct. Without having the signature of all nominees, he can’t distribute. Also if you check the nominee form of PPF then you notice that it ask for % of sharing. Hope your friend already mentioned it. Please follow as he said.

  57. Hi,

    I have opened PPF account 5 years before but i have not deposited full limit amount every year. Now can I deposit that pending limit amount in one installment?

    Opened PPF in 2010.
    2010 – deposited 30,000 (100000 – 30000 = 70000 (balance) )
    2011 – deposited 50,000 (1000000-50000 = 50000 (balance))
    2012 – deposited 30,000 (100000 – 30000 = 70000 (balance) )
    2013 – deposited 30,000 (100000 – 30000 = 70000 (balance) )
    2014 – deposited 70,000 (100000 – 70000 = 30000 (balance) )

    So total balance is 70000+50000+70000+70000+30000 = 290000
    Can I pay 290000 now in this year? I not looking for tax benefit mainly for future investment.

    Please advice

  58. sir, i want to open a
    ppf accnt in sbi. i
    have some queries
    regarding this accnt.
    1. how will i deposit
    in this accnt …mnthly
    or yearly….&…how
    many times in a
    financial yr??
    2.Is it possible to
    make deposit by
    rs.1000/- in 1st mnth,
    nill in 2nd mnth,
    again rs.1500/- in 3rd
    mnth….and so on
    ….like this….??
    plz answer me sir…..
    i’ll be thankful to
    thank you..

    1. Arghya- 1) You can opt internet banking facility of SBI and do transfer, opt for monthly ECS or manually you can deposit into PPF account. It is purely on your convenience. But maximum installments allowed in a financial year is 12. 2) Yes, you can contribute like that.

  59. Dear Basavaraj,
    I have paid PPF from 2004 to 2011 and did not pay after that. What if I leave as it is and close it at the end of 15 years? Will I be penalized for not contributing every year? is there any rule like that?

    1. Anand-They penalize you only when you want to reactivate it. Otherwise no such penalty. Whatever the contributed principal+interest will be eligible for withdrawal once it attains maturity.

  60. Sir,
    I left my first job 5-6 yrs ago(after working for 3 months) but didnt claim the PPF amount after that .For the next 4 years, had my PF deposited in a new PF account, as I didnt get it transferred. I wish to claim the amount in first PF account. Is it possible, as it has been inactive for almost 5-6 yrs now? You mentioned that the second PF account becomes redundant and I get only the principal, but the interest generated in my second PF account is far higher. What would you suggest I do?

      1. Hi ,

        I have a ppf account and i have deposited the some amount(50,000) in financial year 2014-2015.But, forgot to deposit remaingng amount(150,000-50,000) before 31 march- 2015. Now I want to deposit that amount in this april month and I want to claim the tax benefit for the full amount of 150,000. Is it possible ?

        Kindly suggest me.

        Ajay Kumar .G

          1. Thank you so much for the reply. Is there any way I can reduce tax bye paying some insurance etc post the financial year (say 2014-2015) ??

            1. Ajay-Don’t concentrate too much on tax. In my view first do the basics like term insruance, health insurance, emergency fund. Then understand when you need money. Based on that try to chose products which are tax effecient.

  61. I got interest on PPF acount credited in my account on 31 March 2013(from my Account statement), So i will declare it in ITR of Assessment year 2013-2014, given the fact that Previous year in which this interest was credited is 2012-2013(1 April 2012-31March 2013) ?

  62. Dear Sir,

    I am shifting abroad and wants to maintain my ppf account with post office in India.
    I have two questions:
    – Can someone deposit cheque on my behalf, like my parents or my friends using their cheque book to deposit money in my account.
    – I have spoken to Axis Bank couple of times but they are not clear how can my account shift from post office to bank. If you could tell me the procedure.


    1. Mayur-You can deposit through cheque but not from your parents account but from your own bank account. They are liers. You can transfer the account from post to bank and vice versa.

  63. Hi, my 69 year old father is a pensioner and has no tax saving schemes applied for. He opted for a tax saving FD for 1 lakh or the last financial year and is considering the same this year too, Do you suggest PPF for someone of his age. ( He does not have any financial commitments/ requirements, this is only for saving tax and getting a good return).


    1. Sandeep-But locking for the next 15 years is not worth. Currently, he may not need cash. But considering his age, if any health complications then he may need cash. So don’t consider PPF.

  64. hi. A PPF was opened by my father when i was a minor. now the PPF has matured after 15 years period. My father has expired and PPF is being operated by my mother. She is a joint holder of the PPF Account. She went to SBI for the claim but they told that the primary account holder (thats me) has to personally come and sign to claim the maturity amount. Now the trouble is that over these 15 years, my location, signature and appearance has changed completely. Please advice on the following:-

    * What are the documentation / procedures required to update my PPF account with my present information and signature
    * Is it necessary to visit the specific branch for all procedures / claims. PPF was opened in Kharagpur and i am presently based in Hyderabad. We have completely moved out of Kharagpur.
    * How do we claim the matured amount.

    for more information or to reply, you can contact me on 0964754488 / 07095592244. Email id – [email protected]

    Thanks and regards

    1. Atulya-No need to worry. Go with original ID proof like PAN Card or Passport. Yes it is necessary to visit. Otherwise, call to SBI customer case for the same. Because I may know the procedure. But they have their own in built procedure 🙂

  65. Scenario 1 :

    If i open PPF account between 5th March 2015 for RS. 1,50,000, then
    what would be the interest i receive by 31st March 2016 ?

    Scenario 2 :

    If i open PPF account between 5th April 2015 for RS. 1,50,000, then
    what would be the interest i receive by 31st March 2016?

    Please let me know whether scenario 1 & 2 will return the same interest amount.

    1. Narsimha- 1) One month and one year interest on Rs.1,50,000+Interest on your contribution in the year 2015-16. 2) Interest of one year on Rs.1,50,000. In case of scenario 1, you receive one month interest extra than the 2nd one.

  66. Hi sir,

    I have opened PPF account on 5th March 2015 with Rs. 1,50,000. How much can I get interest for the next year

    2. what is the difference amount I gained if I opened on 5th April 2015.

    3. Can I deposit the next year amount 1, 50,000 on 1st April 2016, because this year I have opened account on 5th March.

    Please reply

  67. Hello sir,
    Currently my husband is an NRI,and I’m resident in India. Can I open ppf account? Will my husband can have tax exemption for my ppf account?

      1. Can my husband open ppf account when he comes on leave for a month.

        Is Possible to have tax benifit

  68. dear sir i have opened a ppf account with my huf pan card in april2013. i want close it .what forms are required

  69. I am regular visitor of your blogs,excellent job you are doing by guiding many. I Have two questions kindly answer.
    1)I opened recently a PPF a/c through SBI, If suppose, I do not operate my bank a/c(close) then still can my PPF a/c will be inforce?
    2)I opened in month of October 2014, and paying 2k/month, can I make a lump sum to cover the maximum 1.5 lac before march 2015,b’coz as you mentioned PPF finacial year is from April 1st to 31st march.
    Appreciate your advice and guidance.
    Thanks Many

      1. Thanks Basu for the quick reply.What I understood from your answer is
        1) I can invest my maximum limit of 1.5 lac before 31st march and then until next 31st march 2016 I have 12 instalments and 1.5 lac max limit.Is that right?
        2)Can I remit the money to PPF a/c from any branch of sbi or other town,or I can ask some one to remit in to my PPF a/c on my behalf(eg Rental income)
        Kindly reply to me,
        Many thanks

  70. my wife expired on novenber 4th 2014 and she has around 535000 in her ppf account. I am the nominee of the account
    when should I claim the amount ? now or on april 1st 2015 ?
    what is the procedure ?

  71. Dear sir.
    I am a regular reader of your post.I have PPF account and I invest rs 3000 per month. above u said only 12 instalments I can deposite in every .my question is I invested a additional amount last month.will I get the interest on that amount.
    Thank u

      1. I don’t know how.but I deposited 2 instalment. one through S.I and another lumsum amount.

  72. I had a PPF and closed it when i got VRS. Now i am 66 yrs. can i open a new ppt account? is there any restriction on reopening ppt account once the old ppt account is closed. is there age limit? will the new ppt account lock in period also be 15 years?

  73. sir i unable to pay amount in ppf account from last three year but i want to pay now then what is the procedure and how much is fine

  74. Sir,
    I would like to open a seperate PPF account for my new born baby.
    could it be opened in her name and can her paternal grand father deposit the 150000 PA ??
    since he does not have a PPF account in his name.
    Thank You

  75. Dear Sir,

    I am expecting baby in January. So my question is, when I can be able to open PF on my baby name. Can I open once I have birth certificate. I mean, is there min. age criteria to open PF accounmt?

    Also I am NRI, so before baby gets NRI, I want to open the ppf account on his/her name. Will it be ok?

  76. I want to open PPF account for minor.
    Can I open PPF account for minor with minor’s PAN card number as I am guardian of that minor?
    or is it compulsory to update the guardian’s PAN card number for minor PPF accout.

  77. I want to open PPF account for minor.
    Can I open PPF account for minor with minor’s PAN card number as I am guardian of that minor?
    or is it compulsory to update the guardian’s PAN card number for minor PPF accout.

  78. If you are already in 30% bracket and your 80C limit is already getting exhausted through EPF:
    1) Can you still open a PPF account?
    2) If yes, will you still get the interest of 8.7% ? (remember you have already hit 1.5 L limit through other means)
    3) If no, then does it still make any sense to park some amount in PPF?


  79. from my bank ppf amount was debited on 28th but entry in the ppf passbook in my post office it is 8th of next month, in between only one day holiday, all days are bank working day. i know before 5th it will consider for that month interest even though money was debited from the money why post office people taking another 8 -10 days of entering pass book with delay date

  80. Dear Basu,
    Thanks for your article . I have opened PPF account on the month of October if I want to deposit only once in a year which month I have to deposit it

  81. Is there a maximum age limit before which a person can open a PPF account. In other words, if i am 70+ years of age, can i open a PPF account. I did not had any PPF account previously. Appreciate your response.

  82. I have a PPF a/c in Post Office at Kolkata. However, I am not satisfied with their service & would like to transfer my Post office to Bank of Baroda. Is it possible? If yes, what is the procedure and how much time will it take.

    Also is it possible two maintain two separate PPF a/c in a single name with the total deposit in a financial year not exceeding Rs. 1,50,000/-

      1. Dear Basavaraj,

        Thanks for your prompt reply.

        Bank of Baroda says that they cannot accept transfer from Post office? Is it so?


  83. Sir, I have opened the PPF account in 2001 in BOB, Mumbai. However very next year i was transferred to Bangalore and due to this i couldn’t do any transactions. Pl suggest me what should I do?

  84. I deposited 1L in my SBI PPF account in 2013-2014. My wife also deposited 1L in her SBI PPF account in 2013-2014. I opened PPF account in my 3 year old son account in diff bank (2013-2014) and I am guardian for this account. My Father has deposited 20K (through cheque) in 2013-2014 in my son PPF account. As per rule we should not deposit more than 1 L in my account and my son account. Last year I was not aware about this rule. Please advice what to do. Can I withdraw the amount from my son’s account?

      1. If I stop the future payment, then what will be consequences ? Could you please elaborate ? Thank you.

          1. Amit ji, Don’t stop making deposit in your son’s name in his PPF account. By doing so he will lose to build a taxfree corpus on his name, when he is in 10th or 12th standard, when you will need that fund for his higher education.
            Now you write to your bank, requesting bank to refund Rs.20,000/- from your PPF Account, without any interest, for wrongly depositing Rs.20,000/- in your minor son’s name.
            If your bank is not obliging to do so, then write a letter to the bank, where you are maintaining your minor son’s account, asking the bank to refund that Rs.20,o0o/- without any interest, for your mistake. If that bank obliges you, then thisa year, you deposit Rs.500/- minimum deposit for last financial year with Rs.50/- delayed payment fine, in your son’s PPF Account, along with this year’s depoist in your son’s account.
            Please note that you will doposit in your accountthaty much amount less than Rs.1,50,000/- in your own PPF Account.

  85. Dear Sir,
    I have a PPF a/c with IDBI bank since 2013-14. Last year i deposited 100K & this year also 100K before the General budget session. Now after the budget i want to make a top up by additional 50K, but IDBI officers telling that they are awaiting for some kind of notification from Ministery of Finance. Is this true for all banks? If it is true, do you have any knowledge by when this will be implimented for common man?
    Thanks in Advance..
    Regards Ankur

      1. Thanks Sir, I have two more little quesries..
        1) Do you have any calculator by which we can know the sum amount after 15 year & 20 years via PPF?
        2) I want to open PPF A/c my wife also, but she is a non working house wife, will both of us enjoy the PPF interst benfits as per our A/c balance?
        Regards Ankur

        1. Ankur-You google it and find so many calculators. Yes you can enjoy the benefit of interest but maximum Sec.80C benefit is restricted to Rs.1,00,000 (from this year it is Rs.1,50,000) from your account, spouse account and minor kid’s account.

  86. Sir,
    Can i invest different amount in each month keeping total less than or equal to 150000 per year. ie. 5000 in jan, 6000 in Feb, 5000 in Mar, 8000 in April.
    One more thing can i invest more than one time in a month. say two times in month of September.

    Ashok Prajapati

  87. Dear Basu,

    I want to open a PPF a/c from Sept, 2014 in SBI. Can I do it online? AND can I pay it in monthly installments?

    1. Saptarshi-If your PPF account provider offers you online facility then it is good right? Investing lumpsum or monthly depends on your surplus and financial goals. So I can’t say on that.

  88. I have a PPF account in post office in my home town (U.P.) and currently I stay in Bangalore.
    My doubt: Can I put the money in my PPF account from any of the post office branch in India/ Bangalore.


  89. Sir

    My friend has closed PPF account in July 2014 in sbi which was a discounted account for more than last 10 years he does not made any fresh deposit for last 10 years but got interest for last 10 years on amount he deposit earlier . He had another ppf account in post office which he has opened in mar 2012 . I need your expert guidance that weather he need to close account he opened in mar 2012 to avoid any legal issue or lose in future or he can continue with second account as his first account has been matured and already closed in july 2014 and at present he has only one account but sir keep in mind he has two account for period mar 2012 to July 2014 first in discontinued state and second in active state . Thanks

    1. Rajat-It is not good to have two accounts. But still he opened so maximum he may be penalized in any one account of not getting interest from the period of March 2012 to July 2014. But as the old account already closed, if at all they come to know then they may withhold interest for this period.

  90. My PPF acount matured on Apr 2014.I got full payment of it.Now can I open a new PPF account?Please reply.

  91. im a salaried employee earning 40 k per month.i want to open an ppf account for me and my wife.
    my wife is a house wife.can we both get intrest on investment in ppf. can i claim an tax exemption on her ppf account also.
    can u let me know how to invest to reduce tax and info regarding term policies.

    1. Amar-You can open account. But do remember that including you both, maximum limit is Rs.1,50,000 per year. As I said including both maximum limit is Rs.1,50,000, so you can claim the tax deduction for the same. Regarding saving tax, first prioritize your financial goals. Once they are at place then while investing choose a product which is tax efficient.

  92. Dear Sir,
    I have decided to open PPF account in Post Office, & I wanted to deposite Rs.3000/- on monthly basis. So which one is better to pay monthly or yearly & on which month I should open an PPF account.

    Please explain me sir, I am waiting for your reply.

    Anil Suryavanshi

    1. Anilkumar-If you are planning for one time investment then better to invest in the month of April before 5th. But planning for monthly then invest monthly between 1st to 5th dates.

      1. Sir, Thanks for your reply
        Sir, I have decided to pay on Monthly basis Rs.3000/- before 5th of every month, what makes difference if we pay deposite Monthly or Yearly.
        My friend told me that if I deposite monthly basis I will earn Low interest compare to yearly basis. So which one is better.
        Yearly Lump Sum amount I cant deposite sir, so I want to pay on monthly basis.

        Pl. explain me Sir. I am waiting for your reply.

        Anil Suryavanshi

  93. hi,
    can i increase or decrease the total investment in different years or does the total needs to remain same every year? as in, if in the 1st yr i deposited 50,000 then in 2nd yr can the total deposit be 40,000 or 60,000?

  94. If I accidentally deposit more than the ceiling amt (150000 per new rules) in my PPF acct, may I know what happens? When I visit a branch in person to deposit I understand that the bank person might recognize the same and warn me but what if do the deposit via online fund transfer? Thank you for your time is replying to this.

  95. Sir,

    I opened my PPF account with SBI in 1998 in Renukoot, UP. I am living in Bhubaneswar now. Since the account is matured now, how can I claim my money. Can I approach the SBI bank in Bhubaneswar and submit my claim application. Will appreciate if you can explain the procedure.

    Shailender Kumar

  96. Dear Basavaraj Tonagatti:
    I need to confirm from you that I opned my PPF account in SBI with a yearly investment of Rs 1 lac. For last two years I have deosited the same account an I have been able to get the tax benefit. Now My question is that now from third yr I will nt be able to depost the Rs 1 lac in my account .And maximum I can deposit only Rs 40000/= or 50K only. Please let me know the impact of this thing on my PPF account and also can I do So? and If I keep the same amount going on till 16th yrear…what wud be my maturity amount.??

    1. Waseem-No need to get tense 🙂 You can deposit Rs.40,000 to Rs.50,000 too. The same invested amount will only be eligible for tax benefit. There is no harm in paying minimum requirement to maximum amount. So be cool and deposit as you planned and you can do so in future too.

  97. Dear sir,

    I have a PPF account at Bank of Baroda, Kolkata which was a 14 years old account and now I am transferring the same into ICICI Bank, sir my only question is in ICICI Bank it’s opened for another one year or another 15 years as it’s a continuing PPF account of BOB.

    Sir one thing what is the monthly minimum investment which is able to make ZERO balance of my ICICI saving account, any idea about the same.

    Thanks in advance.

    Subhasis Mukherjee

    1. Subhasis-In my view you are just transferring the account but not opening new PPF account with ICICI. So your account will mature after one year. But you can extend it to the block of 5 years.
      Regarding ICICI Savings account balance maintenance, please contact ICICI executives. They will help you exactly based on account type you have.

  98. Hello Mr. Basavraji,
    I have an PPF A/c with Bank Of Baroda since 1987, presently BOB gives us statement of A/c each year where they do not mentioned our maturity date. I had deposited an amount of Rs. 25000/- on 28-2-14 in my A/c before my maturity date of 1-4-14, bank had given the Xerox copy of chalan, when I received the statment of my A/c I found that my amount deposited was not credited by bank so we approch bank, they said your A/c got matured and we did not received your application in time, so we cannot reneve your A/c, we will return the your amount you have depoisted. So I will not get the benifit in IT for this amount and I am not planning to canncel my PPF A/c.
    Request you to give me proper guidance.
    Vijay Parmar

    1. Vijay-You are claiming that your account matured on 1st Apr 2014 and your payment was within that date, then why can’t they accept it? It is wrong at their end. Can you provide your account opened date?

      1. My date of opening my PPF A/c is 19/12/1987. After Making payment by cheque on 28-2-14, before maturity date of 1-4-14,bank stamped my chalan. Bank gave me statement of my A/c on 24-4-14, where I found that the amount deposited is not credited, so approched bank who says that as I did not gave proper application in time, they cannot extend my A/c. They will refund the amt deposited by me.
        Bank of Baroda has no where mentioned my maturity date in any of the statements given to me till date.

        1. Vijay-It is their complete negligence, they deposited on that date but now rejecting the same means they are running away from their fault. Just ask them why they accepted the amount if they are not sure.

  99. Hello Basavaraj sir,

    Can i pay PPF installments through FUND Transfer as we used to do it with third party account to send funds.

    1. Hi sir,

      I am planning to open a ppf account in post office in one
      district(shimoga), but work in some other district. Will it be possible for me to transfer money to ppf account in post office from my salary account??

      Kindly advise,


      1. Irfan-From your bank account to post office is not possible. Instead if you thinking of online transfer or automated monthly investment then opt in banks like SBI or ICICI but not post office.

  100. Hi,

    i have PPF account but have not paid my PPF from last 5 years …now wants to restart the same account…what is the process and what will be penalties ?

    1. Sachin-It is mentioned in above post as “To activate you need to pay Rs.50 as penalty for each inactive year also you need to pay Rs.500 for each inactive year’s contribution”.

    2. Sachin-It is mentioned in above post as “To activate you need to pay Rs.50 as penalty for each inactive year also you need to pay Rs.500 for each inactive year’s contribution”.

  101. Dear Sir,

    Last year i was able to pay only 50K in my PPF account, do this year i can pay the balance 50K + 1L or it will be not possible.

    Thanks in advance for your response.

      1. Thanks a lot for your response. if you can suggest any good insurance term plan.


  102. hi,
    I have a ppf account started on 1st december 2013..I beleive 15 years will be completed by 1 dec 2028 and will get matured in 1 apr 2029..however i would not like to withdraw and prefer to continue with another block of 5 years.

    so , when should i apply for the extension… should it be on 1 dec 2028 or before 1 apr 2029 or after ?

      1. hi, thanks for the fast reply..

        However, I do have one more question.

        1) can i gift 1 lakh each to my parents and make them open a ppf account?
        2) can i be a nominee to both their accounts and also continue my ppf account? will it be seen as 3 accounts ?


        1. Abhi-1) You can do so. 2) There is no such restriction of being nominee to your parents account. Only issue will arise when you own a PPF account and also guardian of your kid’s account. So go ahead. But do remember that putting all egg in basket is not a wise investment.

          1. thanks….any suggestions for better investing?

            i get around 60K pm as of now…i m close to 27 yrs

            1. Abhi-Better investment advice depends on lot of things like your current family history, existing investment, your risk taking ability and your financial goals. Hence without knowing all these details how can I guide you?

              1. sorry bout the lack of details 🙂

                current family history – no problem abt money.
                current investment – almost zero…was a spendthrift till now:(
                risk taking ability – not great. A bit of risk is fine.
                Financial goals – more money 🙂 no specific %.

                thanks for your reply…I found out about your blog yesterday and learnt about money and insurance from your blog .. Will become a daily reader from now on :)…

                1. Abhi-Then my first priority will be buy term insurance (around 15 times of your yearly income), “no problem about money”….but still maintain around 12 months of household expenses as emergency funding, buy health and accidental insurance for your family and you. Once they are set then the next thing is “Financial goals-money money” is a dangerous kind of thinking. You must be specific about your investments. If you currently not in need of any money (within 5 yrs) then start investing in equity mutual funds 80%, PPF-20%. Still doubt?? Then rely 🙂

  103. Hi basu
    Really appreciate your effort,
    My query is relating to two ppf a/cs , as you said earlier that we cannot merge two ppf a/cs , then is it sufficient if we deactivate one account by not paying the minimum contribution of Rs.500/- to earn interest on second account.

    The problem in my case is i want the second account to be active and earn interest on it where as per rules the second will be deactivated.

  104. I am having twins at the age 3 ,I would like to open ppf account in my childrens name
    Is to possible for me to become guardian for my two children

    Is it advisable to open PPF account in my children name because i am not having a ppf account

    is pan card required for minor for opening a/c

    pls send me the information

    1. Rani-You can open account with kids name and you being guardian. But overall limit is fixed per year as Rs.1,00,000 (from your individual account and your two kids account). So my suggest is to open account in your name and invest.

  105. Hi,

    Thank you for such an informative write up.

    I am planning to open a PPF account with ICICI bank (mainly because of the ease they provide) and plan it to link it with my salary account login credentials so that its easy for me to transfer money in the PPF account.

    My concern is :

    1. What is the difference in holding a PPF account in SBI (govt bank) and ICICI (pvt bank) ? Is there a difference in the scheme of charges they levy ?

    2. What happens if my salary account closes down in coming time (say due to change in my employer). Will it effect my PPF account ?

    3. How easy will it be to transfer my PPF account from ICICI to SBI in future if needed.

    Seeking reply…

    Thank you.

    1. Arpit- 1) There is no difference between ICICI, SBI, IDBI or Post Office. So according to your comfort you can go ahead.
      2) It is not mandatory to have savings account to invest in PPF. So even without savings account you can continue the PPF account.
      3) You can do so anytime. There is no such difficulty.
      So go ahead and start investing. Best of luck 🙂

  106. Mr. Basavaraj, I had opened my PPF A/c on 22-Jul-1999, so it matures on 22-Jul-2014 (though I understand that it will actually be maturing on 01-Apr-2015 and credited to my S.B. A/c). Hence, do I need to pay a premium for FY14-15 too ? Also, I am not too sure if I want to extend the PPF A/c, so by when can I decide and inform my Bank Branch to have it extended / closed ?

    1. Ramesh-Eventhough you opened on July 1999, but years will be calculated in terms of Financial Years. Hence you can contribute the 2014-15 FY limit of Rs.1,00,000. You need to inform them one year earlier. But I am not sure about this as it is procedural matter. Hence request you contact your banker on this matter.

  107. I have a PPF account in the name of my son and I am the guardian. Can I change the guardian now i.e. remove myself and add my wife as a guardian?

      1. Sir .the reason is simple – i have also my own PPF A/C per the rules i just come to know that i cant invest more than 1 lac together in my own and my sons a/c. so if i can shifted my wife name as a Guardian. i can invest 2 lac maximum . that is why i asked ….

          1. sir….. bank never answered positively so far …. that is why i want to know as per ppf rule i can ?

              1. they replied NO – at the time of opening a/c will be the same guardian till the end you close a/c – But I am sure they are also confused .. i asked them where is the proof or where it written they also can ant able to give proper answer .. so if in ppf rules anywhere written that can not change guardian i can fight with them.. so i request you to advice me on the same please… Thanks

                1. Rachit-You are right they too don’t know and there is no such rule I too find about changing guardian during the course of account. But I am sure that this facility must be. Because what if guardian dies in the middle of account period? Then they must change the guardian right? Just put the same question to them too. I know they must change.

                  1. yes sir – in that case i can change but what about in normal case ? if there any proper rules in ppf … if yes … pls let me how can i find that rule – Thanks

                    1. Rachit-I am unable to find any circular related to this. But if nomination can be changed at any time then why can’t guardian?? Just raise the two points what I raised and let me know their reply. Afterward we will try to find the solution further.

                    2. I have the same problem with ICICI bank. I wish to change the name of the guardian from my wife to myself (as I do not have a PPF account). Thus far they have told me that it cannot be done. I have asked them to give it to me in writing. They are still to do so….

                      Can you please advise me which bank did this for you. Is there any official reference material that I can use to pursue this matter.

                      I would appreciate any advice from you

                      Jaideep Noronha

                    3. Jaideep-I don’t think is so hard to change the guardian. Because let us assume father have PPF account as guardian. What if father dies? Then according to them they will not change that to mother as guardian?

  108. Hello,

    I am working as a lecturer and a week back, we received a notice from our institute as follows, for TDS of 2014-15

    As per the instruction given by , I hereby inform to all faculty members to give Income Tax Calculation Form with duly fill up by you with self certified copy of actual investment made or payment of expenses.

    The Proof of following investment of previous financial year 2013-14 will be considered as provisional investment or expenses for the current financial year 2014-15 up to the due date of payment of the said investments or expenses.
    1. P.F deducted from salary
    2. LIC Premium Receipts
    M Mediclaim Policy / Health Insurance Policy Certificate.
    4. Housing Loan Certificate.
    5. Education Loan Certificate.

    Whenever you submit your actual investment or expenses incurred as and when made or expenses incurred, then only revise amount of income-tax will be considered and it will be deducted from the next month of Salary.

    So, submit your Income-Tax Calculation Form with original proofs before 25th March, 2014.

    Now, when I submitted a proof of my PPF (dated April 2013), they declined to accept it as a proof for the current year. I have a basic doubt about not accepting PPF as a proof, though mentioned in 80cc. Second thing, the clerk told that the institute’s financial year was considered from March to February. Can a Self Financed Institute set the financial and income tax rules as per their whim? Am I misunderstanding the thing? Please guide. Thanks in advance for the help.

    1. Chinz-If your PPF investment done within 1st April 2013 to 31st March 2014 then you are very much eligible to claim under Sec80C. No one can deny like this. Also they might have set the FY for their convenience to deposit the TDS and to be at safer side in one month advance to actual FY. But it does not mean that they must follow different FY. It is for their convenience they created like that. They must accept your receipts as proof of investments. If not then you have option to file yourself after March 2014. In that case if any TDS done can be returned back based on your return filed with Income Tax Dept.

      1. Hello Basavraj,

        Thanks for your prompt and helpful response. I also confirmed the same with some of my colleagues and they said exactly, what you’ve mentioned. The problem occurred when I showed my clerk my PPF passbook with a PPF entry date 20/04/13, she denied it by telling that they had already counted it for my previous year calculation. My basic question is how can I show them the investment of current year when it will just start from 31st March 2014? In her words, she needs proof for FY 2014-15 for TDS, wherein she won’t count PPF investment done on 20th April 2013. Is it even logical? I am sure, you must have read the mail they had sent me.

        Thanks for your time and efforts. 🙂

        1. Chinz-The only solution to this problem is to file your income tax return after 1st April every year on your own. Let them deduct TDS and once you file your return, if you are eligible then Income Tax Dept will return that TDS. There is no other way as they are stubborn to themself to be at safer side.

  109. Hi,
    I would like to open PPF accounts for both my kids now and aware that they need to take the account in to their custody on attaining majority.

    My question is whether they can utilise the same PPF account for claiming their IT benefit once they start their employment by changing the account in to their name legally and extending the same account for 5 years block. Or whether minors account seize to exit on initial 15 years term.


    1. Tom-They are very much eligible to utilize the same account once they turned to majority. But how you planned to open account? My suggestion is to open PPF accounts one you as guardian and another your spouse. Let me know your own account status.

  110. Dear Sir,

    I am 25 years and working in a small company and I am not under tax payable. I recently opened a PPF account with Rs. 500/- and deposit this month Rs. 5000/- and I am confused to invest money on SBI Term Fix Deposit or SBI PPF as my earning is not so much. I want good interest but safe. I have not so much knowledge about all these. In PPF is it necessary to deposit the same amount monthly or if I deposit the above same money for one month in a year? and one thing is it better to invest money on SBI Term Fix Deposit rather than SBI PPF and keep PPF account alive with minimum amount to take benefit latter if I would tax payable. Please help and guide.


    1. Indrajit-Good to know that you opened PPF account. You have flexibility to invest monthly without fixing same amount. Second thing, PPF tenure is 15 years and Bank FDs maximum allow you for 10 years. In that case you need to treat PPF as long term investment. Also it is less liquid asset than Bank FDs. So considering the time frame and your requirement you need to invest. Coming back to tax-PPF holds edge over FDs. Because whatever maturity from PPF is tax free which is not the case with FDs (interest earned will be taxed according to one’s tax slab at maturity). Hence think PPF long term and good tax advantageous option.

  111. Hello Basu,

    Hope you are fine. Your articles are so good.
    I need a clarification. I would like to invest 4000 rupees monthly on a PPF which will be opened upon my son in SBI. Assuming the interest rate is decreasing after 15 years, on maturity i’ll receive my fund with interest measured compoundly. Another option to invest is on Fixed Deposit with unchangeable interest rate, in which I can receive matured fund calculated with simple interest. Which option is best? can you guide me?

    1. Sury-First let me know which bank offers you the FD for 15 years? I don’t think no one. Second thing, if you opt for Bank FDs of 10 years then you are not sure the same rate what you are getting today will be offered you after 10 years. I agree that in PPF interest will be fixed every year and will change accordingly. But when you look at taxation part, PPF stands good as investment in PPF will be eligible for deduction under Sec 80C and whatever the return from PPF is totally tax free. Where as Bank FDs interest attract the tax based on your income slab at the time of maturity. Hence in all probability PPF stands good when compare to FDs.

  112. hi basu this is Sunil I left India 2002 and I had PPF acco. on my all family memb. now we got STATUS in other country
    and my kids grown up and other side they do not have INDIAN Identity and the SBI ask us KYC . so how to handle this situations. can you guide me. this is second time I am sending this message I hope u have time for this question

    1. Sunil-This is the second time I am replying (previously I asked the reason for SBI requesting your for KYC). If they born in India then why can’t you show them that they were born in India and due to this you opened the PPF and show them the proof of your migration to out of India. This will prove that your kids were in India and normal residents during the time of PPF account opening. Let me know if above lines cleared your doubts or not.

  113. Hello Basu,

    My current status is NRI and as I understand I am not eligible for PPF account.

    However my parents are still in India and resident Indians. Is it possible to open PPF account in the name of my father? His age is 65+. Can I (NRI) be a nominee? Also, I will be sending money to my father’s account so that he can deposit into his PPF account. Do see any issues in this setup?

    Thank you for all your input!


    1. Amit-Yes your father can open the account. Instead of simply depositing transfer it as gift to him. Also anything earned from PPF is tax free, then he will get total tax free income.

  114. Dear Basu
    I hold a PPF account in the Post office from 2004. Can I now open a minor PPF account in ICICI for my new-born without any hassles ?
    Also, Could you please guide us in transferring the post office PPF account to a bank.

    1. Jai-Yes, you can open one more minor account being yourself as guardian with ICICI Bank. Regarding transferring the account, it is more of procedure related which your banker will guide you in a better way.

  115. Dear Sir,
    I have confusion related to getting interest on my PPF account and my son’s PPF account in which the guardian is her mother. Now as per rule I can invest maximum 1 Lakh in my account as well as my son’s account together. Now my query is that if my father invests 1 lakh in my son’s account by way of gift and I invest 1 lakh in my account, will I be earning interest in both account or the rule will be the same even though the amount invested in my son’s account by my father?

    1. Tapan-Even if your father gift it your kid and invest in PPF, but still you being the guardian of that account, it is treated in your account and still Rs.1 Lakh maximum limit holds to both you and your kid’s account.

      1. Here I would like to inform you that the guardian of my kid’s PPF account is my wife and not me.

        1. Tapan-In that case, if your wife have PPF account then including her and son’s account maximum limit is again to be Rs.1,00,000. If she does not have her own account then you can enjoy interest on your own as well as your on son’s account.

          1. Thanks for the prompt reply. My wife does not hold the PPF account, she is the only guardian in PPF of my son. But still the question is that the person who will be investing 1,00,000 in both accounts will be myself or myself and my father., then also I will get the interest in both the accounts? I want to be very sure about this because I have inquired this issue to well known Chartered Accountant and he clearly denied to do so. If there is any rule or act which could justify this then please let me know, so I can refer it thoroughly.

            1. Tapan-If she not hold her individual account then your kid’s account will definitely fetch the interest. Reason for my claim is, each individual (this includes own account as well as guardian account to minor) is allowed a maximum investment of Rs.1,00,000. So according to this your kid’s account will definitely fetch you the interest. No doubt on this. You chartered account might have denied this only because of the reasons of taxation. But when we differentiate the taxation issue from interest fetching then your kid’s account is 100% eligible for earning interest as your wife hold as guardian and she does not have her own account.

  116. I have been investing rs. 100,000 each in PPF account for my two kids and my self; total 300,000 every year. I am not worried about the tax exemption. I am looking forward to your guidance on the interest earned. Will I and my kids get interest (8.6%) every year in our PPF account? There has been some confusion that my kids will not earn interest and only principle amount will be returned at the maturity. Please advise. Thanks.

    1. Rakesh-As per rule, individual can invest maximum of Rs.1,00,000 per year (which includes your kids account where you are guardian). Some reasons or other, your banker might not know about this rule. But in future if Govt come to know about this, then you will entitled only principal amount of what you invested more than Rs.1,00,000. So whatever you learned about PPF account of minor is right understanding.

      1. Thanks Basu for your time and advise. Really appreciate it! Just to confirm once again, I and my kids will earn interest in our PPF accounts. Is my understanding correct? and it is legal and as per the govt PPF guidelines. Thanks once again for confirming. Kind regards, Rakesh

        1. Rakesh-Pleasure 🙂 You will get interest on your as well as two kids account as long as Govt will not notice it. Once they notice then they will return your invested amount without any interest. Legal or not is secondary, but as per rule, one individual (his account+his guardian accounts in the name of kids) can invest maximum of Rs.1,00,000 per year.

      2. One more query, I have two kids. I need 15 million rs each for their higher education in 10 years. How do I structure my investment?

        1. Rakesh-Regarding this query, I need to understand your current status of finance and how and what type of investor you are and how you line up for future expenses. So without knowing so many DON’T KNOWS, I am unable to answer. Also overall financial planning consumes my time, for which I work on fee based. If you are interested then I will send the scope of my work details.

          1. Thanks Basu once again, please do send me your work details and offer. We shall communicate through our private/business emails. Kind regards,

  117. Dear Sir
    I have opened an HUF PPF account in 1998 which matured on 31 March,2013.
    but i have not closed the account till date. since HUF account cannot be renewed now i want to close the account and want to withdraw the amount.

    My Question is if i withdraw money today do i get the interest of this over due period?

    if yes than at what rate it will be?

  118. Hello Sir,

    I need your urgent help. My father who had a PPF account with SBBJ tragically passed away on 17th Dec 2013. He had a PPF account since 1989 with SBBJ. I went to bank to claim his PPF amount but bank says I need some clearance from Ministry of Finance in addition to Form G to claim this amount. My mother is the nominee.
    I have read various guides to PPF where it only mentions that Form G should suffice for claiming amount as it is death case. But bank Manager told me to get an additional clearance from Minister of Finance.Do you think he is misleading me. He says his bank’s rule book says so. How is it possible for common man like me to go to Ministry of Finance.

    Please help.

    Thanks and Regards,

    1. Rudrabir-First of all sorry for your father’s demise. Yes, you are right that banker is mis-leading you, because he himself don’t know the rules. What a shame that bankers are asking individual to contact Ministry of Finance for death claim amount in PPF. You shoot one question by submitting written application of Form G with necessary documents to accept in written. If reject it then let him give in writing so that you can proceed further. So sad that because of such things you are unable to get the PPF amount. Please do as said, and update the same here on this platform, so that we all can learn from such strange behavior of bankers.

  119. Hi Sir,

    First of all thank you for your wonderful article about PPF which helps many people including myself.

    My question to you is:
    I am 28 Yrs Old and my monthly savings is Rs 9000/- in which I have divided this by investing in LIC Jeevan Anand & LIC Money Back Policy. After I heard about PPF I am thinking the returns I get in PPF is much higher than what I get in LIC after 15 years. For life cover I am planning to buy a term insurance policy. Considering the above scenario is it worth in diversifying my monthly saving of Rs 9000/- investing in PPF alone? Or should I consider some other options as well.

    Please advise.


  120. Sir,
    I have started PPF in June 2012.I want to known from which period I can contribute Rs.100000/- whether from June to June or from April to April.

  121. Sir,

    I have opened an HUF PPF account in 1998 which matures March,2014.
    But i have lost the passbook for 1998-2000. I do have the passbook from 2001 up-till now.
    The banker is creating issues and demanding that particular passbook as-well.
    What do i do now.?

    1. Anuj-Passbook is a record keeping reference for investor but not to bank. Even if you lost the passbook then too they can’t deny the maturity proceed. Request for new passbook, if they neither providing it nor closing the account easily then simply use the word “RTI” to them. Hope they will bend. Because I don’t think passbook is the reason for denying the maturity proceeds of PPF.

      1. The banker says as per his record the account has opened in 2000.
        But I have the counterfoils proving I Have made deposits since 1998.
        But he is not agreeing to those counters as-well.

        1. Anuj-If you have proof then with proof write a letter to Branch Manager of Bank stating that they must close the account as the account is about to close. If still they persist then the only option is legal action against them like contacting banking ombudsman for this serious lapse in service. First submit a letter and request the manager either to close the account or let him give in writing for not closure of account.

  122. DEAR SIR,




  123. Dear Sir,

    I opened my ppf account in SBI in financial year 2011-12, ie. 2 years back. But I failed in depositing the minimum amount of Rs. 500/- last year. Now I understand there is a penalty of Rs. 50 for each such year. I have also read that I can deposit money in my PPF account through net-banking. I want to know if I can pay that penalty & arrears of last year online..?
    Will I have to transfer the amount by calculating myself..? & how much time will I have to wait for my account to reactivate again so that I can transfer further more money ?
    Please let me know.

    Thank You.

  124. Is there any minimum trasaction per year for PPF account? And what is the procedure to withrdraw the amount after maturity?

    1. Prasanna-It is already mentioned above. Minimum subscription will be Rs.500 and maximum contribution will be 12. So based on these two conditions you can subscribe a year. Once account matures then you need to submit Form C (which your banker will provide you) along with passbook then they will process it and will credit to the bank account.

      1. I’m maintaing all transactions through online. After opening the account, I’ve never been to bank so there is no passbook. Will that be a problem?

  125. my ppf account has got matured. but we are staying in another place but our account is opened in our native place. is it possible for me to get the amount (matured amount) where I live at present. please answer

  126. Dear Sir,

    Needed your advice whether i am eligible to open a PPF account although I have a PF account opend by my employer with EPFO.


  127. I have a PPF a/c with SBI .Can you please clarify Is it necessary to have a savings a/c with the same branch to deposit closer chq payment from bank.

  128. Dear Sir,

    I have two PPF account in my name, I want the accounts to be merged. What can be the process. Please suggest.

  129. Hi Mr.Basu,

    Good Day.
    First of all I would like to thank you and appreciate for doing such a wonderful job.
    I have a query.

    Suppose I’m starting my PPF investment in March 2014 and currently the interest rate is 8.60%. If the interest rate gets changed in the year 2016 say either to 9% or 8.6% will it get reflected in my PPF investment.
    Or since the interest rate when I started was 8.6%, I will continue to get interest in the same rate (i.e.) 8.6%.

    Kindly clarify.
    Thanks again !!!


    1. Prabhu-Whenever there is a change in interest rate then the same will be applicable to all PPF holder. It is not like Bank FDs, where the interest rate is fixed at entry and will remain same for whole tenure, irrespective of change in bank interest rate. So you must understand that PPF account is not fixed interest but floating.

  130. Thank you so much sir.. I have also one question .
    If i have Invest in ppf & it was already mature ( that menas completer 15 yrs) than for further investment can i invest 2nd time for 15 yrs???

    1. Hotel-Once your PPF matures then you have the option to extend it further in each block of 5 years till you wish to close. But not in 15 years term. So you can utilize this option.

      1. It means if ppf matures in 2014 than its extend only upto 2019??? can after 2019 it will extend for next 5 yrs??

  131. i have deposited 1lac in my name nad 1 lac in minor name since 2006. how can i claim my total money back without any problem. pls suggest.
    manish jain

  132. I had opened my PPF A/c on 22-Jul-1999 which I suppose will mature on 22-Jul-2014. So, I won’t need to pay any premium for the FY2014-15 and will have to visit the Branch sometime in FY2014-15 to have the amount on maturity to be credited to my Savings A/c with the same Branch. I would like to know if my understanding is correct, and what is the procedure to have the same done. I am presently out of town on deputation and hence can’t reach the concerned Bank’s Branch, nor is their Helpline helpful.

    1. Ramesh-Even though your account completes 15 years on 22nd July 2014, but the maturity of the account will be on 1st April 2015 (immediately first day of next FY). So till that period you need to wait. I am not sure about how your banker will cooperate with you regarding the transfer of maturity amount. As the time is also one year from now, I don’t think it will be trouble for you in contacting your banker.

      1. Thank you Mr. Tonagatti for the clarification on maturity of my PPF A/c. Sadly, Banks themselves seem unclear about rules of PPF A/c as one Branch said something and another something else. Strange that onus of knowing the rules in on a/c holders not the Bank staff !!!

              1. Thanks. I did find the Act on the web, but it doesn’t have all amendments till date hence thought someone might have the revised one. Seems will have to sift thru multiple circulars to get latest rules 🙁

                  1. My PPF A/c matures in July 2014. I understand that I will have to wait till 31-Mar-2015 for getting matured amount credited to my S.B. A/c. Is it so ? Also, I want to continue investing in PPF for tax benefits. Is it better to open a new account or should I extend the one which matures in few months ? My key concern is that my PPF A/c is with a PSU Bank which doesn’t offer payment of premium through NetBanking, which makes visiting the Bank Branch (in a different city) very inconvenient. I understand that one can get their PPF A/c transferred to another Bank. If so, what would be the procedure for the same.

                    1. Ramesh-If your PPF account is linked to bank account then they will directly credit to your bank account. You can continue the same account as there is no point in closing this and opening the new one. For your PPF account transfer better to contact the bank to which you want to transfer. It is not a big issue, you can transfer it.

  133. Hello Mr. Tonagatti,

    I have a PPF account since 2006, and I have been contributing the minimum amount for the first 4 years. Since 2010, I contributed 1 lac per year. My question is: Is it possible to contribute for previous years (2006-2009) now though I will not be getting any tax benefit for those years. I am willing to pay any extra charges, if applicable. Please let me know.

  134. I want to clarify after completion of 7 yrs..I am permissible for withdrawal of some amount once in a year..Year is taken as Ja n to dec or April to March for withdrawal,,Suppose in my seventh year I withdraw in MAY…Then I will be eligible to withdraw in eight year in Jan or not….

  135. Hi, I have a doubt. If i open a ppf account by investing Rs.5000 per month. Is it possible that I can revise my premiums to Rs.7000 say from my third year onwards. Likewise can i revise my monthly premiums within the total tenor of 15 years?
    Is that possible? If so is there any limitation that premium amount can be revised for only this many number of times?

    1. Prabhu-Yes, it can be possible. They will only consider the annual contribution which must be a minimum of Rs.500 to maximum of Rs.1,00,000 in any financial year. So it is your option to invest either more or less. So there is no such premium revision issue at all.

  136. Hi,

    I have PPF account and since years inventing in it every year. in the initial years, i have invested some minimal amount and later i have started investing 1 lac per year and it is between 1 to 5 th day of Apr every year since 2 years.
    i have one question. Since, i have missed investing full eligible amount per year in the earlier years, can i invest now in PPF? If yes, i am thinking that, i can invest in the last week of march so that i will not loose out the interest on the cumulative amount. Is this approach is correct? Please suggest.


  137. My parents aged about 65 have recently opened PPF a/c and contributing. In case of death of the account holder, will the amount be taxed if it is received by the nominee.

      1. Hello Basavaraj – are u sure in this? I was told that the when the nominee receives the money, it will add to his/her income and hence taxable. Kindly clarify. Thanks.

  138. Hello sir
    Thanks for all your comments posted.. I’m Kiran aged 31yrs. I was blessed with baby boy recently. I want to invest around 4-5k per month to ensure the returns will be used for his education and other needs. Can you tell me the best way to invest these funds and get regular returns.

    Many Thanks

    1. Kiran-First buy term plan for you (equal to 15 times of your yearly income), buy family floater health insurance, have emergency funding for about 6 months of your household expenses. Once all these are in place then start investing in 80% equity and 20% PPF.

  139. Hello Sir

    I am having 4 Persons in my Family. Me , My Wife , My Son ( 1 Year Old ) and My Daughter ( 2.5 Years ) Old.

    Can I Contribute 1,00,000/- Rs in PPF account of All 4 Members? I.e ( 4 Lacks Per year).

    In income tax I take tax benefit of My account only. Does Interest I receive on Remaining 3 Accounts ( My Wife and My 2 Children ) is Taxable?

    And besides Investment in PPF Account , Can I Invest in Tax Saving Bank FD also?

    Please Guide Me.


    1. Alap-Including your account and your kid’s account maximum you can contribute is Rs.1,00,000. The rule clearly states that “Any individual may, on his or on his own behalf or on behalf of a minor of whom he is the guardian, subscribe to the Public Provident Fund any amount not less than Rs.500 and not more than Rs.1,00,000 in a year”. As your wife is treated as individual so she can invest Rs.1,00,000 into her account.

  140. Sir I just want to know if I start my PPF APRIL 2014 .. it will achieve its 15 years in April 2029..but on reading ur valuable answers for some of the comments I understand that i cant withdraw this till end of march 2030! AM I RIGHT?? If i am right ; do i earn any interest for these 11 month deadlock period..with out any investment from my end!!!

  141. hello sir,
    please tell me the right time to start PPF either (JAN 2014 ) or APRIL 2014, which one will fetch me more returns at maturity ?.

    1. Dayashankar-There is no such great benefit by postponing it to till April. Only the point is, if you start in Jan 2014 then maturity will be on 1st April 2029. So you need to wait for another 3 months to maturity.

  142. Hi Basavaraj
    I opened one PPF account through ICICI Bank. I submitted my PAN for Identity Proof. There my surname was wrong on PAN. It was SINGHA. But it should have been SINHA. My PPF has been opened with my wrong surname. There was no mistake from Bank’s side. Now I have got my PAN rectified with correct surname. I would like to update my correct surname in PPF A/c also. Is it possible? If yes, what steps I have to take. Please guide

      1. Thanks Basavaraj for your reply. One more thing I would like to let you know… Sadly ICICI Bank is asking for a Notarized Affidavit and two news paper advertisement, one in vernacular and the other in national paper. This is too much. I repeatedly told ICICI Manager that there is no change in name, only rectification of spelling. But they are not agreeing..

        1. Shamik-If they are not heeding then ask them to show any order or circular mentioning the same rules. Because 90% of them are shooting in air without knowing the proper knowledge. Also let me know what they reply.

  143. Hi Basu,

    I have opened PPF account in the year 2011 and contributing every year regularly. I may require to move to USA for couple of years on job front, can i contribute while I’m away from India. Or will they treat my account as NRI for these years.

    Please advise.


    1. Phani-As you are claiming that you will be outside India then for residential status you are considered as NRI only. But resident Indians who already have accounts and turned into NRIs can continue their PPF account. So don’t worry you can continue. NRIs can’t open a new account but they continue their existing account.

  144. Hi, I have a PPF account in my name where I invest Rs 1 Lac per annum. Can I open a account in my minor daughter’s name & can I desposit Rs 1 Lacs further in her account. Also I already have a account in my wife;s name in which also I deposit Rs 1 Lacs per annum

  145. Dear Sir,

    I have a 3 years old nephew (my sister’s son). I want to open a PPF account in his name. Can this be possible ?


    1. PR-No, only parents of a child are allowed to open account. Grandparents can also open the account in the name of grandchildren only in the case of both the parents died. Hence you can’t open the account. Instead suggest your sister to open the PPF in her kid’s name and being a guardian as herself.

  146. Sir, I have not yet opened PPF account in this year 2013-14. If i open PPF ACCOUNT BEFORE APRIL 2014 will I be able to get the deductions under 80C for the financial year 2013-14?
    Also please let me know as to how much amount i have to invest in every year to get tax benefit as i am investing in term insurance by paying a premium of 12000 every year and we have EPF contributionn of 9500 per year…

    1. Adarsh-Yes if you open now and whatever you contribute till March 31st will be considered for this Financial Year under Sec80C.
      How much you need to invest in this product depends on a lot of things. So plainly I can’t recommend you. If you are asking me to fill your Sec80C benefit then don’t invest more than Rs.25,000 to Rs.30,000 as this product is considered as debt product.

      1. HI, I wanted to know if i miss out on putting full lakh in a particular year, can i add that in later years?? i have account for past 7 years and in first three years deposited less than 70,000/- can i now deposit

  147. Hi,
    I have opened a PPF account during Nov 2009. I have been depositing 50,000 annually in it. I would like to know if I can deposit more money in PPF.i.e., From now on if I want to invest 1 Lakh per year can i do so? Is the interest tax exempted?
    What should i do for it?

    1. Ramya-Yes you can increase your yearly contribution upto Rs.1,00,000 for a financial year. If you are investing a lump sum then invest at the start of the financial year (between 1st to 5th of April every year). Instead if you are investing monthly then maintain the flow of investment before 5th of every month. Yes interest is totally exempted.

      1. In order to increase my investment from 50,000 to 1 Lakh, do I have to goto SBI office and intimate them about my increase in investment? Because when I opened the PPF account, I have told them that my investment for a year will be only 50,000.
        If I have to goto SBI bank and intimate them, can I do it in any SBI branch? Or should I goto the same branch where I opened the PPF account?

  148. Dear sir
    My son who is now an NRI is having PPF account to be matured on 1-4-2014 after completion of 15 yrs. Now he can not continue as per rule but he do not wants to withdraw it now ,will he get interest on it & when he can close it

    1. Jain-Yes if he is not willing to withdraw then it will automatically consider as an extension without contribution for the block of 5 more years. So he will earn the interest as usual but can’t contribute anymore.

  149. Is it compulsory to contribute into PPF every year even in case of not having enough income to take benefit of Income Tax?.Is there any RBI’s special instructions on this?

    1. Malhotra-Yes you need to contribute minimum Rs.500. If not then the account is treated as inactive. While activating the same you need to pay Rs.50 as penalty and Rs.500 as each inactive year’s contribution for each inactive year.

  150. Sir,
    I have one issue on PPF
    I have opened a PPF account in Post office in the name of my Minor son. Since then I am depositing the amount every year and claiming the benefit under section 80C of Income Tax. He is now attained majority but is not available in India and he is not an assessee in India. I am continuing the deposit in the same account. Am I eligible for 80 C benefit about the amounts deposited in the same account

    1. D.Nageswara Rao-Once your son attained majority then you must inform the bank or post office about this and include his signature and nomination to that account. Also once he attains majority then that account is treated as his own individual account. Hence you no longer claim the Sec80C benefit. Also during the account opening his status was individual where as his current status as NRI, but you still continue the account till maturity.

      1. Can you please quote the reference in IT Rules where it was mentioned the ineligibility under Sec 80 C as explained above

        1. Nageswara Rao-From PPF act it clearly states that you can only deposit to your own, spouse and minor kid’s account but not to major kid’s account. So when you are not eligible to contribute to investment then automatically you are not liable for claiming deduction under Sec80C. For detailed rule you can visit this link of PPF.

  151. Hi,

    I’ve opened a PPF account today. I’m planning for Annual payment. So, the amount that I’ve deposited today would be considered for FY 2013-14.

    From next year onwards, I’m planning to deposit all installments in the month of April which is the starting month of Financial Year. If I pay next installment in April 2014, will that be considered as the second year. Can I directly pay the third in April 2015.

    My doubt is, there are two installments paid from Dec 2013 to Dec 2014 (1 year period). Will they be considered for one year only? So, I need to again pay the amount for the second year in Dec 2014.

    Could you explain me the actual process and suggest me the best ways & month to deposit annually.

    1. Serenu-Even though you opened the account yesterday, it will fall under the FY of 2013-14. Your Rs.1,00,000 contribution per year will not be based on your account opening day but on FY. So if you paid Rs.1,00,000 in Dec 2013 then it will be for 2013-14. If you pay Rs.1,00,000 in Dec 2014 then it will be for 2014-15.
      Instead of contributing a lump sum at once in the beginning of the year or in between. The best method will be to invest monthly between 1st to 5th. If you have sufficient cash then you can invest at once between 1st to 5th of April itself. Otherwise follow the monthly contribution.

  152. Hello sir my husband account is get over by mid next year. Can do the contribution after that . I think there wont be any interest for those amount, am i right. If so what else we can do with the amount if not need to use right now.

    1. Ranga-You can extend the PPF in the block of a 5 years each. If you don’t need money then extend it without contribution also. In that case your accumulated amount will earn the interest rate as usual and will be tax free also.

  153. HI GUYS
    I have two queries:
    1st Query:
    I have opened my PPF account in 2006 with 18000/- annually. I have paid 18000/- in the first year and due to some personal reasons I could not pay the instalments from 2007 to till date. Now I want continue the instalments to PPF account. I have read we need to pay a find 50/- per year along with arrears (126000 for 7 years). If I do so, will I get the interest for investment (18000+126000) for these 8 years? How much interest I will get ? Will I be eligible for the loans if yes then from which year? Is there any other way or if I don’t pay the installments till 15 year from 2006 ie 2021 and will I able to withdraw the amount in my account (18000+ what ever the interest)?
    Can you please suggest me on this?
    2nd Query:
    I want to invest 18000/- annauly (with Monthly instalment of Rs. 1500/-) in the name of my Minor Son from this financial year. I want to invest in lump sum of 18000/- in Dec 2013 for FY 2013-14 (to show the investment in 80 C in FY 2013-14) and from the next FY 2014-15, I want to pay 18000/- in monthly instalments of Rs. 1500/-.
    Can I do this?

    Can you suggest me what can I do on these 2 queries. Thanks in advance.

    1. Ramakrishna-You can re-activate it with paying the yearly minimum investable amount of Rs.500. So for the past 7 years you need to pay minimum of Rs.Rs.3,500. I don’t think they allow you to pay more for this lapsed period. You will get the interest on Rs.18,000+whatever the amount you pay for this lapsed period. Interest will be based on that particular year’s interest rate. For detailed eligibility of loans and withdrawal visit my post “PPF-Loan and Withdrawal“. If you don’t want to invest future or not interested to activate the account then the invested amount will only earn till maturity and will be paid to you at maturity.

      Yes you can do so to get Sec 80C benefit.

      1. thanks for ur reply…..can i transfer my deactivated account from one sbi to other sbi….can you suggest me on the 2nd query

        1. Ramakrishna-You first need to activate the account then you have the option to transfer from one branch to another. I already replied to your another query that is-Yes you can invest so.

  154. Hello Basu,

    I have a question on PPF.

    Back ground:
    My father-in-law has opened a PPF account for my daughter and my wife as guardian in Post Office in 2006. While opening the PPF account he has mentioned my daughter’s name as D. XXXXX and my wife name as D.XXXX.

    Now, I wanted to transfer the PPF to ICICI bank. Both my wife (SB Account) and my daughter (Kids SB account) has savings bank accounts with Full Names, ie., My wife’s name as Surname Lastname and my daughter’s name as Surname Middlename Fullname.

    As far as I know while transferring, Post Office will send the cheque to ICICI with the balance amount and because of the name difference, Will there be any problems while transferring?
    If it is a problem for transfer, Is there any other way to fix this issue? (like can I change both the names at Post office first then transfer?)

    Thanks in advance


    1. Srini-I think you need to rectify it while opening the account with ICICI claiming the required KYC process. Also make sure to discuss this issue with ICICI Bank before proceeding for transfer. I think they will change it based on the account they have. Please do share the latest updates about the same also. It may be learning for all of us.

  155. I want to contribute to my wife’s PPF account to avail 80C benefit for me. How should I do this so that incase of audit by IT dept I have fool proof evidence. Should I make cheque to my wife’s PPF account or do NEFT transfer?

  156. Thanx Basu. I have read your articals and post responses, it is very nice and informative. Now i am planning for opening my PPF account with SBI (i hv saving account). As per your recommendation PPF Installments should be paid between 1st – 5th of the month. Today is 18th Nov 2013, so i am planning to open my PPF Account on 1st Dec2013. As PPF year ends on 31st Dec 2014 below are my quries:

    1. If i pay 20000 in Dec 2013. (Opening Account)
    20000 in Jan 2014
    20000 in Feb 2014
    40000 in March 2014
    Total of 1 lac till march 2014 (paid on 1st of every month). Can this year is calculated in my 15 years period??

    2. How much sum i get after 15 years with 1 lac investment per year.

    Thanx once again for such great forum on investment.

    1. Dinesh-1) Yes this year too considered for 15 years consideration. Suppose you start your account on 1st Dec 2013 then it completes 15 years on 2nd Dec 2028. But it actually matures on 1st April 2029 (corresponding next Financial Year).
      2) Again to calculate how much you get after 15 years will depend on when you pay monthly and how much you pay. May I know about this?

      Also my suggestion will be to diversify your investment instead of over investing in any product or asset class. I am not sure about your finance. But just recommending you this tip 🙂

      1. Thanx Basu for your prompt response. Regarding point 2 i m planning to pay total of 1 lac (having 12 installments) before 5th of every month.

        Regarding Tip, Thanx a lot. I am salleried person having 50000 per month & can invest 20000 per month. Can you please provide options for investments for good returns. (15 to 20 years)

        1. Dinesh-If we presume that your monthly contributions are Rs.8,333 and current interest rate of 8.7% then after 15 years you will accumulate Rs.26,66,132. If you are able to save around Rs.20,000 then my first priority will be to cover your life risk by proper term plan, cover your family health by buying health insurance (even if you have health insurance coverage from your employer), buy accidental insurance for yourself and finally have emergency funding of around 3-6 months always in any liquid asset class. Then start your investment by putting around 30% in PPF+EPF, 10% in gold ETF and rest 60% into equity (mutual funds).

  157. IF monthly investment to be done will be same fix amount or to be changed & for interest benefits deposition done before 5th or not necessity?

      1. Thanks,
        for regularly monthly investment by NEFT from bank what is the procedure of SBI Bank.


  158. Hi,

    Is amount invested in PPF safe from court decree? I mean in case of a divorce, will spouse have any right on PPF amount?

  159. I have been paying for years but havent extended it. What are the benefits and losses associated with the same.

      1. I have been putting money each year continuously in my ppf account. Checked yesterday and haven’t ever extended for five years ever. Where do i stand? My account is 25 years old. I didn’t extend after fifteen years. What are the pros and cons. I fail to understand the difference between with and without contribution considering i did not extend.

        1. RK-If the existing account already closed and you have withdrawn the cash then you can one the new account and start your PPF investment. With contribution or Without Contribution means, you can extend the PPF after 15 years without investing or with investing in the same account.

      2. No its open. I paid another lakh last month. 22nd year of my account and i have never given and extention form or letter. Theg still accept my payments. So question is whats my status? Can i continue like this? Can i withdraw?

        1. RK-I am unable to understand how without extending the account from your end they are accepting the investment. Please try to get the real issue with whom you have PPF account. Also request you to share the real issue with us also.

  160. Dear Mr. Basavaraj Tonagatti I have opened PPF account in Post office and paid few installments after that due to some reasons i didn’t pay for last 2.5 years. Now can i Continue the same PPF account? if yes what are the procedures.
    thanks in advance for your reply.

    1. Bhoopathi-You can’t open one more PPF account as you already have one. You can activate the existing account by paying Rs.50 as a penalty for each inactive year account also contributing minimum contribution of Rs.500 for each inactive year.

    1. Hello sir, my parents never had any ppf account all their life.
      My father is 54 and my mom is 47. Can they get a ppf account opened at this age in sbi now?

      And I opened my account on 30th dec, 2013… deposited 500 rs.. then on 22nd feb, 2014, again deposited rs. 500. On 31st march, I got only 15 rs interest. Why so less?

      1. Abhilash-Surely than can opt for PPF if they have any long term financial goals like more than 15 years. There is no age hurdle to open account. Why you are investing post 5th date of every month? Make it within 1st to 5th of every month. It will generate you more interest in long run. Regarding less interest, how much you expected? As return from PPF is currently around 8.7% per annum but not per month.

    1. Manish-Even though under Sec 80C kids may be major or minor. But when it comes to PPF contribution from father to major kid will not be allowed. So in my view better to ask your father to gift it to you and in turn you invest in PPF. So from the taxation view your father can avail benefits of Sec 80C. But in reality to PPF account, your father can’t contribute to your account.

  161. Thank you for the reply Basavarj and Hemanth.. When i visited the bank last time, i literally fought with the represntative, sicne he was not ready to close the new acct. his behaviour was very rude and he continuously kept on telling me that i dont have option than maintaining account linked to ppf..n y am not unable catch the simple thing they are explaining..then later he raised some request in front of me and told to come back after 3,4 working days..I will visit the bank again and follow ur suggestions.. thanks again..

    1. Mamatha-Let them behave like that. May be they afraid of loosing one savings account. But please make sure to ask in writing whatever they are claiming either from the concerned guy or from Branch Manager.

  162. 1) Is there any restriction in the maximum amount that can be accumulated in a minor PPF account?
    2) Is there any restriction in the total amount deposit in the PPF account of a minor in a year?
    3) Does above restriction have any relation to the amount deposited by the parent in his PPF account that year?

    1. Rajam-To reply all your doubts, I have only one answer. Maximum contribution one can do including self and minor kid in a year is Rs.1,00,000. So maximum contribution a minor with a parent can do is Rs.1, 00,000. The total contribution is same as that of any other account.

  163. hi mr bashu you r doing n excellant job i really imprrssed. now i dont know more abt ppf i want to know if i invest 7000 per year from now wt amoount approx should i get at end of 15. my dob 16 02 1987

    1. Pankaj-Please let me know how you want to invest this Rs.70,000-Whether on monthly base? If on monthly base then within 1st to 5th of every month or after 5th of every month? If lump sum then on which month and date approximately you want to contribute to PPF?

  164. Boss Hats off to you………..

    Boss tell me which is the best scheme to invest. my saving is 7000 per month. and i want to invest monthly. tell one best
    scheme with highest risk means greater return and another one is lowest risk and its returns. my investment is for 10 years.boss u r highly impressive…

  165. Hi,
    In may2013 i opened a ppf account with icici bank.i already had a savings account with icici.But still they made me to open a new savings account for ppf. now when i want to close that savings account, they are telling i dont have any option since its linked to ppf account. Can you please guide me if i can close a account linked to ppf account.

    1. Mamatha-I think one more savings account is not a mandatory. You ask them to attach the PPF account with your old savings account to operate. They have only one condition that customers need to have savings accounts with them. This condition was already fulfilled with your existing old savings account. So ask them to provide their decision in writing statement.

      1. with that written statement meet the BM ; if he also voces the same.. ask them about ombudsman contact number!! things will follow very swiftly!!

      2. Hi Basavaraj,

        This is shashank, thanks for let us know the benefits of PPF account,

        Adding to Mamatha query, as per PPF rule it is not mandatory to have savings account, directly one can open PPF account.

        Please share your thoughts

        Best regards,

        1. Also please let us know, why is that cap for not doing transcations more than 12 times in a year,
          If we do so what is the scenario.

          Thanks once again.

  166. I have PPF account and also EPF account for which certain perc of my basic goes every month.

    My question is should I put some money (some more voluntary contribution in EPF and around 20000 in PPF annually)regularly in these two accounts or should I divert this money to NPS by keeping a minimum contribution in these two accounts?

    I have also two mutual funds on pension plan and ULIP with UTI(UTI Retirement benefit pension and UTI Unit linked insurance plan) where I am contributing monthly some amount.

    I am around 33 years of age, considering all these, can you tell me what should be the ideal investment for my retirement at the age of 50 years?

    1. Ashok-Your current age is 33 years and you are saying retirement age at 50 years. So left out period will be 17 years. Considering the time frame I don’t think it is ideal to invest more portion of your retirement investment towards either EPF or PPF. Because both are debt product but the return from both types will be around 8.5%. So I suggest you not to increase your exposure towards these products as retirement corpus building.

      Regarding your UTI products, I am not aware about the exact expense ratio both the fund have. If you provide me the exact names of both the products then I can look into. Otherwise can do it yourself by going through the investment bond details. If expenses are higher side then again these products seems to be unworthy.

      Instead I suggest you to go for equity mutual funds (direct plans) where you can have a greater potential to earn more to build your right retirement corpus.

      1. Hi,

        Thanks for your reply
        The names of two funds are – UTI Unit Linked Insurance Plan and UTI Retirement Benefit Pension Fund.These are the exact names.
        I want to start a SIP in UTI Opportunities Fund(Dividend) as I have already invested some amount in it and want to start SIP for 6 – 7 years.But the performance in the last one year does not look very good, so do I go ahead with the SIP option and if so , for how many years, because I assume MF returns are dependent on how well the fund is managed and I dont want to get stuck with a fund that underperforms after sometime.
        What are your ideas on Birla Sun Life Tax Relief 96 (G)?

        1. Ashok-Both the existing UTI plans seem debt oriented hybrid plans. Which I don’t know will serve any value addition to your long term financial goals like retirement. Instead your choice of UTI Opportunities fund seems the best option to me. When you have a long term perspective then don’t think about the short term ups and downs. Hence this is the good fund and I suggest you to go ahead with this fund. Regarding Birla Sunlife Tax Relief 96 (G) – it is a tax saving fund and lock in will be there. If you are looking for some tax saving option then my choice will be Canara Robeco Tax Saver Fund (G). Also suggest you to switch all your investment towards direct plans. By doing so you can earn more around 1-2%. But there will be no middlemen. So you need to handle all your fund related service part on your own. But the benefit will be more than normal funds 🙂

  167. Hi,
    I am Venkatesh
    I have opend PPF A/c with SBI in Sept 2011 for 40000/- per annum.
    1. How much amount I will get on Maturity date as per 15 years tenure (if I pay Rs. 40K every year)
    2. How much amount I will get on Maturity date as per 20 years tenure (if I pay Rs. 40K every year)

    Thanks & Regards.

  168. Hi Basavaraj,

    Thanks for all the info you’ve been giving on PPF.

    I have a small calculation to be cleared. If I start investing 1 lac every year for 15 years, then I end up paying 15 lacs at the end. Can you please tell me exactly how much will I get in returns on maturity?(considering the present rate of interest – 8.7% which is compounded annually).

    1. Raghavendra-To do the calculation I need below clarification from your end.

      1) How you are paying this Rs.1,00,000? Is it lump sum? If so on which month every year?
      2) If it is not a lump sum then monthly how you want to contribute? Either between 1st and 5th of every month or after 5th of every month?

  169. Hi, I am working in UAE, willing to invest about 100000 per year for my daughter. so that i can get good ROI. Can you suggest me where to invest?
    1. As LIC regulations are going to change from OCt-2013, shall i go for Jeevan Ankur?
    2. Can you tell me whether i am eligible for PPF?
    3. Can you suggest some other good child education plan?



    1. Hemant-My answers are as below.

      1) If you are looking at good return which can easily beat your daughter’s education and marriage inflation then better to not to invest in Jeevan Ankur. I think some LIC agents are luring you by saying the IRDA changes which will come into force from 1st October 2013. For your information, infact LIC will be adopting new mortality table which will reduce the premium amount but at the same time they are adding service tax. So no one is clear how much will be different. Hence my suggestion will be not to invest in any such low yielding plans.

      2) PPF will not be available for NRIs. So you can’t invest.

      3) If your daughter’s education and marriage goals are more than 10 years then better to invest in a well diversified equity mutual funds. If you do so you can easily beat inflaiton in long run. But at the same time don’t forget to cover your life risk first fully.

  170. i have open my PPF 2012 in SBI but there are not yet transaction. i have tow doubt please clear….
    1- I have closed my Saving account which is linked my PPF for my personal region . how will be possibility at maturity of PPF.
    2- currently my PPF deactivate can i deposit 2 lac + 50 rupee in current year.

    1. Raman-Closing of your personal account which is attached with PPF is not at all a problem. Banks usually link for easy fund transfer. So don’t worry on this issue. You can’t contribute more than Rs.1,00,000 in a year. Yes first you need to activate it before depositing the amount.

  171. Hi Basu. Hope you are doing good. Appreciate ur replies n keep up the good job. I have a query. I opened ppf account on 30th August 2013. I understand that the maximum investment is 1 lakh. Is this amount for the financial year ? If I need to make an investment of 1 lac for this then should it be before 31st march 2014?

  172. Hi Basu

    The article was very informative.
    I have a PPF account in State Bank Of India.It was opend on 20/07/2011. I made a deposit of Rs 10000 on that day and dint do any other transaction till date.So is it deactivated now? If I need to pay penalty to reactivate it then is there any option to pay that online.Since Im a working woman, I m not able to visit the bank to get the details regarding status of my account or paying penalty for reactivation.What should i do?

    1. Shigee-Yes it was deactivated. By paying Rs.50 as penalty per year you can activate it. I am not sure about the activation process of State Bank Of India. Hence call them and get the information. Once it is activated then you can pay online itself.

      1. Dear Sir,

        I have two PPF account in name of my minor son and daughter. These accounts were with Punjab National bank at Delhi and in October, 2012 I transfer these accounts with SBI at my village in Himachal. I checked my passbook and found that SBI have only paid the interest from the period when the accounts were transfered to their branch. for the interest I contacted with Punjab National Bank at Delhi and they told that SBI will pay the interest. Please help me that from where I can get the interest for the period for which my account was with Punjab National bank, Delhi.


        Anil Aery

        1. Anil-Unique problem. So if they are not mending then better to use the RTI asking them (Punjab National Bank) why interest is not credited. At least write a letter stating all difficulties and if not resolving then you may use the RTI to get information. Let us wait and watch. Also request you to post the follow up you did on this issue so that others can also benefit from it.

          1. I hv the same problem .I was having a ppf account in SBI new delhi ,I hv transfered to SBI allahabad in oct2012 . I have not been paid interest from 1st april 2012 to oct 2012 .please advice how can i get the interest. thanks.

            1. Vineet-In your case interest payout till 31st March 2012 will be from SBI New Delhi. From 1st April 2012 to 31st March 2013 it will be from SBI Allahabad. So your new bank branch will be responsible to credit the interest.

  173. Sir, I have opened a PPF account with post office in the Name of my Minor daughter U/g Me. Now i have changed her name by making an affidavit and applied to her school for name change. The school accepted her name change, Now i made an application for name change in PPF account with the copy of affidavit. Whether is it possible for name change in PPF account.

    1. Trilochan-They have to change it as the procedure is rightly followed as per legal requirement.

    2. Trilochan ! All the banks des days have name change applications which can be availed and it is very easy process but I doubt if post offices have this ..if not …den transfer ur ppf account to any bank dat is convenient at best to u and u can be assured that ur lil ones’ name is modified!!! Best of luck!

  174. At 8.7% if it looks safe to me and I invest 1,00,000 this year. In future if rate goes down can I keep on paying even just minimum of Rs 500 per year and still keep my account active?

    1. Saket-For minimum payment and conditions for keeping account active, please refer above post.

  175. Hello Sir,

    I planned to open PPF A/c on name of my child whos age is 2 years old and If I open before 5th Sep 2013 then it complete on 4th sep 2028 and maturity date will b 01 april 2029. It means six months additinal waiting period for maturiy.
    and my Question is.
    Is it I loss the Int for 6 month period or they add the Int calculation of this additinal six months of maturity.or I else wait for six month i.e upto march 2014.
    their will any major diff in return if I start now or after six month.

    Please clear my point.
    and what the doccument should I keep with me before I go to open the account.

    1. Raj-They will add interest to that period. So no loss for you. No difference, so you can go ahead now also. Normal KYC documents are enough to start (photo identity, photo, date of birth proof).

  176. Is it ok to claim deduction under 80 c for amount investment made in ppf if investment is. Made early in the financial year, say 1 april? Or does it have to be from income earned in that year

    1. Sujatha-I am not clear about your doubt. But to make it clear, if you invested within the same financial year then you can claim deduction under Sec80c but not prior year investments.

  177. Hi , My fathers PPF is now 25 years old. He deposited the contribution this moth and bank returned the money saying that account is matured.
    He wanted to know will he still get interest on existing sum in the a/c or he has to withdraw all the money and invest it somewhere as interest wil lnot be given

  178. dear sir i open a ppf account in sbi but due to poor services of bank i cant maintain it even not a single transaction made by me in this account,now icici bank offer a ppf account.can i open a ppf account in icici bank? i not maintain my sbi ppf a/c can this affect my running maintained account

    1. Raman-One can open only one PPF account. So my suggestion will be to transfer the same account to ICICI by activating it.

  179. I have a question.I opened PPF account this year only in 2013 on 03rd of april…when will be its maturity date???

    1. Sonu-Your account completes 15 years on 3rd April 2018. But it will mature on 1st April 2019. If you opened your account four days prior i.e on or before 31st March 2013 then maturity will be 1st April 2018.

  180. Dear all,
    1-I have to apply open PPF in SBI in July 2012 in myself ID and Address proof, but by mistake SBI staff open PPF to my wife name ( due to Jointly saving account) but he was not gave passbook .and they are also denied for new passbook many time.
    2- I have a PPF in the same saving account, but there are no any investments
    Hence I want to open fresh PPF account of me and my wife name with another saving account.
    Please ignore grammatical mistake and suggest.

    1. Raman-You can open only one PPF account in one’s individual name. If you are facing such service glitches then transfer your account to other banks or post office.

  181. Greetings Basu! I have few queries :

    1: I will open a PPF account and I will deposit around INR 2000/- pm from now on till one year . So that turns out to be Rs 24,000/- in one year with the prescribed maximum of 12 installments. Its fyn till here. But the next year also do I need to continue with the same 2000/- pm or do I have an option to step-up or step-down my monthly installment. So i am actually talking here about variable ppf payment yearly! Do i have this freedom ..If so what are the limits!! Please guide me!

    2: PPF in any nationalised bank vs PPF in postoffice..are both one and same? which one is better as per ur experience..

    Thankyou ..

    1. Hemanth-My answers are as below.
      1) It is not mandatory to follow the same style of investment, in your case monthly Rs.2,000 in the first year. You have the flexibility to invest accordingly but the maximum contribution allowed only 12. So don’t worry about that. But the advantage of your monthly contribution is, you feel ease of investment and your monthly contribution will earn interest for that month itself (if you contribute within 5th of every month else from next month).
      2) All are same so no need to worry.

      1. Thanks a lot for ur prompt reply sir.. Actually I recently joined in one of the nationalised banks and In our bank we have PPF .. when I enquire abt this to my seniors dey are telling me something like PF wch gets deducted every month from their salaries..llly few of them are quoting me some thing like variable provident fund.. can you just differentiate among these..PPF vs PF vs VPF !

        1. Hemanth-Sorry for the delayed reply. I think they are informing you about EPF-Employee Provident Fund, which is mandatory once employer strength goes above specified limit. Usually lot of guys don’t differentiate between PPF (which is not employer obligation but individual investment product) to EPF (which is mandatory for employer). VPF stands for Voluntary Provident Fund where you contribute more than the specified limit of 12% of your salary. But your employer have an option either to contribute or not.

  182. Dear Sir,

    I opened PPF A/C in PO on 29.06.1999.
    Kindly confirm:
    1. My PPF starting year will be from 01.04 2000 and will it mature on 01.04. 2015.

    2. Can I make 16th contribution between 01.04.2015- 28.06.2015 with full benefits.

    3. If I extend it for further 05 years, then can I withdraw 60 percent of maturity value as on 01.04.2015
    a) In one go within 05 years
    b) Once every year in part within 05 years

    Best Regards,

    1. Anil-My answers are as below.
      1) Your PPF start date is 29-06-1999 but maturity will be 01-04-2015.
      2) You can’t make during the said period.
      3) For this withdrawal details please refer above post in detail.

  183. Dear Basu,
    I have a peculiar situation. My daughter’s ppf account was opened the month she was born, in 2004. Her father is the guardian on same. Both of us made desposits into it. We are divorced now. Since my daughter is with me, her ppf passbook has also been given to me for future. Can i change the guardian name on this, alongwith change of address ? Please advise.

        1. Shruti-Sorry for delay, I will get back to you soon with authentic information.

  184. Hi basu
    I have one query regarding ppf tax rebate. I have ppf a/c in my name from 2000. In july 2012, rs. 70k was deposited in that.
    A) my wife is housewife but having income from fixed deposit interests and regularly filing return. Can she avail tax rebate on amount deposited in my ppf account being hindu family and spouse. Please note, I am not taking this benefit for my tax rebate.

    1. Sunil-To avail tax benefit under Sec.80C, only the person depositing the amount to PPF is eligible for deduction. So in your case if she have a source of income to show from where this income rises to deposit into PPF then she can avail the benefit by depositing into your account. But this rule only applies to the spouse not to parents account or siblings.

  185. Dear Basu,

    1) If I get my ppf account opened by this july or august i.e 2013 ,exactly when my amount will mature..i am confused as the rule says 15 years after the closure of the financial year in whcih the account is opened.
    2) What disadvantage will i have opening a ppf account in the mid of the financial year.According to me I will just loose the interest for the previous months for this financial year.will there be any other disadvantage..

    Please Clarify..:)

    1. Anand-1) If you open on to say 1st of August 2013 then 15 years will be completed by 1st August 2028, but in reality your account will mature on 1st April 2029. Maturity will be beginning of next financial year.
      2) No disadvantages according to me. Because interest will be calculated on monthly principal balance. Hence you can start at any time.

  186. Thank you for the information.
    So transfering NRI funds to PPF a/c is there any problem ? Any question for fund source ?

    1. Sunil-I am not sure about this issue. Better to contact the concerned bank or organization where you opened the account. In my view opt for online transfer to PPF and that makes easier for you.

  187. Dear Basu
    Can you please clarify, NRI’s can not open PPF A/C, But can they open PPF a/c for spouse and kid, as they stay in India. what is the procedure ?

    1. Sunil-Yes NRIs can’t open PPF account but they can open account in the name of spouse or kid (provided both are again non NRIs and your spouse can be a guardian to that-I think NRIs even can’t be guardian but not sure about this, so better to make your wife as guardian or confirm with concerned bank before opening account).

  188. Dear Basu,

    I have 2 kids – is it ok to open 4 PPF a/cs (self, spouse, 2 kids) ? I understand the interest part (max of 1 Lakh) but will I be allowed to deposit upto 4 lakhs every year ?


    1. Sandeep-Yes you can go ahead and if your both kid’s are minor then you can be guardian to those accounts. Also you can contribute Rs.1,00,000 to each account.

  189. Anand-First option will be beneficial for you as the whole Rs.1,00,000 will be considered as principal from the beginning of the year itself. If you are unable to deposit the whole amount at once on or before 5th of April then start monthly contribution but again before 5th. For detailed way of calculation of PPF interest, refer my blog post “PPF-When to contribute to get higher returns?

  190. hey basu i have a quetsion..
    Suppose i want to deposit 100000 p.a which will be a better option..???

    1) Deposit 100000 between 1st to 5th of april of that financial year.
    2) Deposit a fixed amount between 1st to 5th of every month of that financial year.

    Will it have any substantial difference..???

  191. Hey Thanks a lot Basu for the prompt reply.

    One of Nationalised bank (SBI) said that she cannot be guardian for more than 1 additional account and that too had to be a blood relation however another Private Bank (ICICI) said that she can be guardian to both daughters and deposite 2 lacs (into Daughters PPF accounts) only once both my daughters have their own PAN numbers–as a result it was really confusing to know who is rught and what is the right things.
    Anyways, I shall wait for your response and than only proceed for PPF account opening.
    Thanks Once again.

    1. Apoorv-In any of PPF rules they have not restricted to one or two account guardian issue. Second thing, why kid’s need PAN in this issue I have not understood that too their is no case of TDS. Go ahead according to my suggestions. If they are so adamant then we can show them some rules available related to PPF 🙂

      1. Thanks Basu

        I shall try opening the accounts and will share my exp once I am done with 🙂

        1. Apoorv-That’s great if you share your experience on this platform so that including me everyone know about the issue you faced. Thanks once again.

  192. Hi Basu

    I have been reading your posts regarding PPF and replies to lot of people. I must say that you are doing a great job. Thanks for all your support.
    I too have few specific queries and I have been to various Banks for this information but the way they reply doesn’t seem to give me a confidence if they are saying the right thing or not.
    My queries are as follows (pls see if you could suggest/help):

    My wife has a PPF account with SBI bank and now she wants to open 2 more PPF account on our daughters name as Guardian-both minor (Purpose of it is not to have tax expemtion but to build a safe corpus for their higher education)
    a. Can she open PPF account for both minor daughter as Guardian? If not, what is the way out?
    b. If she invests Rs 1 Lac in her own account than; can she invest another 2 Lacs in daughter’s PPF accounts?
    c. Is it required that both daughters must have their own PAN Numbers to have benefit of tax free income from additional 2 Lacs (for minor daughters)?

    1. Apoorv-Thanks for your appreciation 🙂 My answers are as below.

      a. Yes she can open account in her own capacity as guardian to both kids.
      b. Yes she can contribute to both the accounts.
      c. Anyhow PPF returns are tax free. But as income is not generated from their own talent I think it will be clubbed with parents.

  193. Hi Basu

    Scenario – If one has ppf account running for 5 years and then he gets a job out of india for long term . can he continue to invest the maximum investment posible ( with change govt rules) in PPF until 15 years from date of account opening ? could you detail this scenario

    1. Aashish-Yes as I told above, during time of account opening if your status is as residential individual but after opening it changes then too you can contribute. But do remember that once status turned to NRI then they can’t extend the period over 15 years, that facility is only available to Indian residents only.

  194. Dear Basu,

    I had a question in same regards what Mr. Santu is asking. As he is having 2 seperate accounts on his and his wife’s name and he is filling seperate IT returns for both, doesn’t he get benefit of sec 80C for total amount which is in between 2 lacs total?

    As both the account holder names are different, they should get interest on amount more than Rs. 1,00,000 not exceeding Rs. 2,00,000.

    Please clerify.

    1. Pankaj-Exactly but in separate names, one in his name and another in his wife name but in different tax return filings. From each individual account you will get interest on Rs.1,00,000. In this case accounts are two hence including both accounts they receive interest on Rs.2,00,000.

  195. Hi Basu,
    I am quite new to investments so a few noob questions: Is the yearly deposit amount fixed for PPF like a recurring or is it flexible.
    1. Can I invest just Rs 1000 one year and 50000 next year in a random fashion?
    2. Can two deposits be made in a single month as total no of deposits is 12/year?

    Thanks for your valuable input.

    1. Drawin-PPF contribution is depends on you. So it is not fix like RDs.

      1) Yes you can do so.
      2) Each deposit in a year will be considered as new either it is in a same month or different month. So limit you will have maximum of 12.
      Hope I cleared your doubts 🙂

  196. Hi Basu,

    Thanks for the such a valuable posting. I opened a PPF acnt in 2006 thru my employer, had been making investments. i shifted to another city in 2010, and did not make investments in it after that year. Now can i withdraw the amount in it, how much percentage can i and how do i do that, if it is deactivated ?. Your guidance is appreciated.

    Arjun D

  197. Hello Basu,

    If I have not paid my ppf deposit for fy2012-2013. So I understand my account can be activated by paying 50rs penalty.. But is 500rs that I pay for that inactive year also a penalty? Or would it be deposited to my account ?

    1. Basu, I appreciate for your post,enlightening people about an important concept related to income tax. Keep up the good work and I would look forward for more from you..

  198. Hello Sir,

    I forgot to deposit minimum amount of RS 500 in my (SBI) PPF account for financial year 2012-2013. If I pay amount with penalty then am I eligible to get tax benefit for financial year 2012-2013.

    Please guide me how should I approach bank in this situation.


  199. sir i need to know can i deposit 100000 each in my ppf account i have 2 kids minor and my wife so will i get interest of 300000 or just of 100000 lakh

    1. Sanjeev-You will get interest on all investments but tax exemptions will be only for Rs.1,00,000.

  200. Hi,

    ME and my wife both have PPF acc separately. I will pay for both and the amount would exceed 1L mark.But I will put her PPF amount in her IT return and my PPF amount in my IT return. In that case can I avail interest on full amount (exceeds 1L) ?? Need your advice. Thanx

    1. Santu-Any amount invested above Rs.1,00,000 will not earn interest. So no issue of considering of interest part of over Rs.1,00,000 deposit.

  201. Hi Basu Nivesh,
    Seeking for your valuable guidance.
    I have depositted Rs.100000 in fin.year 2012-13 on dated 21st.march.
    I want to know – Is this year will be my first year? As fin. year ends after 31st March and next fin. year will start from 1st April 2013.
    Mohinder Singh

    1. Mohinder-I didn’t get what you exactly asking for. You invested Rs.1,00,000 on 21st March 2013 means you can show this in the current FY not for next FY.

  202. Hi Basu,

    I have query like
    For this year i open the PPF account with 5000 Rs/- the same amount should be maintain for 2nd year ???.
    and it i dont have that much for 2nd year can i pay minimum like 500 Rs /- per second year.


    1. Sravani-Yes you can do. Because when you open account with Rs.5,000 contribution then this contribution is more than the minimum Rs.500. Next year you again need to contribute either minimum of Rs.500 or more to it.

  203. Hi,

    BasuNivesh- I have a query on PPF.
    Can I invest 1,00,000/- lumpsum PPF in postoffice/nationalised bank in march for FY 2012-13. How much tax I can save in Rs.
    Thank you for your all above information.

    1. PVR-You have another 11 days left out to invest in this FY. Tax Saving is depend on how much your current Sec 80C exemptions are and in which tax bracket your income falls.

      1. BasuNivesh- In Sec 80C currently I have saving only 22000/- for EPF and hence paying 22k TDS. If I want to get all my 22k in IT returns e-filing is my 80k investment in PPF will b suffucient!?

        Thanks alot for replies!!

          1. PVR-If you completely utilize Sec 80C then you can save Rs.20,000 (which includes EPF, PPF, term insurance, Tax Saving FDs, ELSS).

            1. Dear Sir,

              I have kept my PPF inactive for a while may be 2 years or more. When I opened it was 70K/ year being the maixmum amount. So Can I now pay the arrears of 140000 and continue my PPF account.

              Also, I have an online account, so I can do NEFT directly from SB to PPF.

              Please guide through.

              Thanks and Regards

        1. PVR-You are saying your Rs.22,000 tax saving is from EPF, then first priority should be towards covering your life risk by taking online or offline term plan. I did not understand “80K”?? Your goal of investing in PPF should be tax saving with meeting your financial goal. Hence don’t concentrate only on tax saving instead invest on goal based investment.

  204. Hi Basu
    Thanks for great knowledge sharing.
    My query also relates to what Amit has posted in 1st Question. Suppose If someone’s PPF account has been on the name like abhay kumar singh but now wants to remove ‘singh’ from PPF account name..Is it possible? and what if he also provides the proof of this name (abhay kumar)like PAN CARD or Passport?

  205. Hi Basu,

    My PPF got matured after 15 years and I forgot to fill form H. As I understand in this case the account by default gets extended without contribution for a block of 5 years. Now after this first block of 5 years is over can I convert it back to account with contribution for the next 5 year block by filling form H?

    1. Arvind-Tricky question 🙂 In my view you cant…as specifically they mentioned that you need to submit Form H before one year of closure. But still you can raise the same issue with your PPF provider and get clarified. I will also try from my end about the same. We will update the same on this platform once we get clarity…this may helpful others too. Give me sometime.

      1. Hi Basu,

        Thanks for the prompt reply. I will wait for your further feedback.

        Given below is a part of the text from PPF scheme 1968. You may be able to interpret it better, for me it still leaves a bit of ambiguity.

        As per proviso to Rule 9 (3) the subscriber can retain his account after maturity without making any further deposits for any period without limit. For this purpose, it is not necessary to give option in writing. It is automatic. Form H has since been amended. The balance in the account will continue to earn interest at the normal rate applicable to PPF accounts. The subscriber can make one withdrawal in each financial year of any amount within the balance. Once the account is continued without deposits, for more than a year, the subscriber cannot opt again to continue the account with deposits for a block period of 5 years.
        [MOF (DEA) Notification No. F.3(6)-PD/86 dated 20.8.1986]


        1. Arvind-Thanks for sharing it. So it clearly indicates that you can continue the account without any further contribution. But can’t continue the account with fresh deposit for block of 5 years. Hope we both got the clarity on your doubt.

          1. Hi Basu,

            My question still remains. After this block of 5 years of non contribution is over, can I revert back to contribution? My understanding of it is that I can. But the last line of that passage stops short of making it exactly clear.

            1. Arvind-You can’t, because last line clearly specify that if the closed account continued without any contribution, then you can’t extend it by submitting Form H.That’s what I told in my previous comment too.

  206. Dear Basu,

    Thanks for this fine article on PPF. I have two questions directly related to my PPF account:

    My PPF account was opened on 28th April 1998.

    Q1: When my account will mature?

    Q2: What would be the last date for me to apply for extending my account for another 5 years ?


    1. Subhasis-Eventhough your account completes 15 years on 27th April 2013, but it matures on 1st April 2014. Before one year completion of post maturity, you can submit for extending application by filling Form H. Means before 1st April 2015.

      1. Thanks a lot Basu for your quick response. Got total clarity from your answer. Thanks again 🙂

  207. Hi Basu,

    Thanks for providing the valuable information on PPF.

    I have few queries,
    1. I need to change the details of some information in the PPF account, I want to get it corrected. I have the passport and Pancard with correct details. So, how can i get it done?
    2. As informed above, once my PPF 15term is over, i can extend it for next 5 year term, is this possible for only twise(extension for 10 years) or i can keep it extending more then that?
    3. I want to open account for my kid,age less then 1 year. Will this come under my 80c tax saving?

    Thanks in Advace.

    1. Amit-Please see my answers.
      1) Details in the sense what? You can change address or any personal changes. I think it is not possible to change the investor name.
      2) As many times as you can extend it. No restriction on that.
      3) Yes it will come under Sec 80C. But please note that, from your account and your kid’s account you can only avail the benefit of upto Rs.1,00,000. Considering two accounts does not mean that you can claim deduction under Sec 80C maximum of Rs.2,00,000 from both accounts.

      1. Hi Basu,

        Apolozies i was off the grid becuase of some reasons.
        As suggested by you, I can open an PPF account for my kid and i will get the tax benefits max 1lak. The point I want to know is, should I go for PPF for my kid or should i opt for some other policy available for kids.
        The ppf account i want to open for my kid is for long term which can be used for his higher education or some heavy requirements.


        1. Amit-Diversify your investment into PPF+Equity (well diversified mutual funds). If you go with both the combinations then it will be a great combination to get higher returns than running behind any insurance company.

          1. Hi Basu,

            Thanks for the inputs.

            For the mutual funds, I dont get the positive feeling. I started investment in one of the hdfc policy 3 years back with 20k per year. After 3 payments, i paid 60k to then and value of funds is only 32k. So i have lost my confidence in it.
            Should I continue with the same investment or should i close it and go for PPF or insurance policy or some child policy.

            Please suggest.

            Thanks in Advance

            1. Amit-From your experience I presume that it is not the HDFC Mutual Fund product instead it seems HDFC Life’s some ULIP plans. Please differentiate between mutual fund products and ULIPs. If you invest in some good funds with monthly SIP route and contribute for long term then it will work better than these plans. Hence don’t get confused and go ahead. My suggestion will be Term Insurance+Part into PPF+Part into equity mutual funds and forget about child plans.

  208. Hi Basu,
    Nice article to read.
    I have two questions on the following point:
    “Minimum investment is Rs.500 and Maximum investment is Rs.1,00,000. Amount invested more than Rs.1,00,000 will not be eligible for interest and for tax benefit under Sec 80C”

    Q1: Will they accept more than Rs.100000/- for investment in an year?
    Q2: If first question’s answer is “yes” then answer this question. Assume, if i have invested Rs.150000/- in PPF this year, i will get interest for Rs.100000/- and no interest for Rs.50000/- this year. But, for the next year on-wards, will i get interest for the cumulative amount whatever is available in my account?

    1. Dinesh-Below are my answers.

      1) Yes they accept more than Rs.1,00,000.
      2) I dont think so. Because if that option is available than lot of investors might have opted. Like investing Rs.2,00,000 this year. But getting Rs.1,00,000 interest on same year and next year onwards interest on Rs.2,00,000. Also it not looks prudent to keep your amount in any investment where interest is nil for one year. So even if they provide interest from next year onward, but you need to bear the loss of interest for current year.

  209. Dear Basu,

    Good article.Thanks.

    I have a question for you. What are the provisions for a Minor having a PPF account? At what age can he open an account? If father and mother have EACH deposited Rs.1,00,000 for the year, then say, if they have 2 kids, is it allowed to deposit Rs.1,00,000 in EACH of the KID’s PPF account in the SAME YEAR?

    Please clarify.

    Thanks and Regards,

    1. Mahesh-Thanks. Meaning of minor is, person whose age is below 18 years. So anyone who is below 18 yrs of age can open PPF account. Yes they can invest in their 2 kids account upto Rs.1,00,000 in each account.


      2. i think you are wrong. you cant deposit beyond 1 lac in each a/c. if u have a/c in minors name than cumulativly u can deposit 1 lac only for both the a/c.even though u may not want any tax rebate or deduction under sec 80 c but still u CANNOT deposit more than 1 lac.

        pl verify with the relevent authorities otherwise u will interest on all your deposits in the minors a/c.
        where there is a guardian to any minor a/c than the MAX limit is 1 lac only.

        1. Naresh-Yes you are right, for minor accounts as a guardian and own account maximum limit is Rs.1, 00,000 only.

          1. Dear sir
            3 years back a PPF account in the name of my daughter in law who is a NRI was opened as it was not known that NRI can not open account. From this financial year we stopped depositing in this account. Kindly guide how this account can be closed & deposited amount may be taken back.

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