Want to revive your discontinued PPF account? Follow these simple steps
If an individual fails to contribute to his PPF account, then the account is handled as discontinued. How to revive this?
- PPFs are long run funding backed by the federal government
- For those who fail to contribute to PPF account, your account is handled discontinued
- Go to your close to financial institution or publish workplace to begin your PPF account
Public Provident Funds (PPF) are long-term investments the place we’re supposed to make investments Rs 500 a yr to hold the account energetic for 15 years. The utmost quantity allowed is Rs 1.5 per yr.
PPFs are backed by the federal government. So as to begin your PPF account, you simply want to go to your nearest publish workplace or a financial institution to open a PPF account.
If an individual fails to contribute to his PPF account, then the account is handled as discontinued. The subscriber will get again his cash solely after the expiry of the maturity interval of 15 years, together with curiosity which can proceed to be added annually (even within the discontinued account) on the stability at a charge mounted by the federal government from time to time.
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How to revive your discontinued PPF account?
- Submit a written utility for reviving the account on the financial institution or publish workplace the place it was opened
- Submit a penalty of Rs 50 for annually of default
- Cost of Rs 500 for annually of arrear
- A minimal subscription price of Rs 500 for the yr through which the account is being revived has to be paid by the account holder.
Saving in PPF additionally presents you tax advantages underneath part 80c of the Earnings Tax. Having a PPF account is an effective possibility as you possibly can earn some good return on your cash whereas avoiding any kind of threat.
All of the curiosity earned is backed by a sovereign assure, which makes it a protected funding. A discontinued PPF account loses all its benefits until revived. You too can take a mortgage towards the stability within the account any time after the third monetary yr until the tip of the sixth monetary yr.
A PPF account holder can also be allowed to make some sure withdrawals from the seventh yr onwards until the maturity interval.
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