Activate PPF Account: Public provident fund is considered to be the most popular investment
Your PPF account has also become inactive, so how to start it, know the whole process
Activate PPF Account: Public provident fund is considered to be the most popular investment tool for long term savings. There is also a facility to take a loan with a government guarantee on a PPF account. If a person’s PPF account has become inactive, then it can also be revived.
new Delhi. One of the most popular investment tools in India is Public Provident Fund (PPF). People usually opt for PPF for long term savings. PPF can be invested for 15 years. After this it can be extended for a period of 5-5 years. To keep PPF account active, it is mandatory to deposit at least 500 rupees in a financial year. Experts believe that many times in the long term it happens that people are not able to deposit even a minimum amount in a PPF account. After this the account becomes inactive.
Income tax rebate benefit on PPF account
PPF is a central government scheme. This is the reason that it also provides low risk guarantee with better returns. PPF account holder can invest a maximum of 1.5 lakh rupees in a financial year. In addition, they also get the benefit of tax exemption under section 80C of Income Tax Act.
Interest
is received even after the account is inactive , a special feature of the PPF account is that when it becomes active after the account holder fails the deposit, the interest keeps adding to it. In such a situation, if the account of any PPF account holder becomes acti ve, then they will continue to get the benefit of interest. However, they will not get many other benefits including loans. In such a situation, today we are going to tell you how an inactive PPF account can be revived.
1. To revive an interactive PPF account, first you have to write a letter where you have opened your account. Account holders can write this request letter to the branch of the bank or post office where they have opened the PPF account. In addition, you also have to pay attention that it can be activated within 15 years of opening an account for the first time.
2.After this, the depositor has to submit a minimum deposit account in his account along with non-payment penalty. For the financial year this account has been inactive, a deposit of at least 500 rupees will have to be made for that financial year. A penalty of Rs 50 will also have to be paid for each financial year. A check will have to be submitted along with a written application in the respective branch.
3. After submitting the written application to the bank or post office branch, it will be ascertained whether it is being activated before the period of 15 years after the opening of the account. This account will be reactivated after depositing the penalty and the remaining deposit.
Keep this in mind too
You have to note that if the 15-year period is over, then the PPF account will not be able to be revived. However, after depositing the accountholder penalty, till now, he can adopt the necessary procedure to withdraw the maturity amount lying in this account. To withdraw the maturity amount, a penalty of Rs 50 will have to be paid on a per financial year basis.
