Public Provident Fund (PPF) is a government-backed investment scheme in India. It is very popular for the good rates of returns and security associated with the investments.
Most of the working parents today in India prefer PPF because of the tax benefits it provides on the investments made. If you are contributing to the PPF account of the minor, you can enjoy the tax benefits on your contributions to your own PPF account as well as to the account of your minor children. PPF account for minor children is a good idea if you want to build a long-term corpus for their education, marriage or any other requirement.
Know the basic details about opening a PPF account for a minor:
You know who is eligible to open a PPF account for a minor child? Any guardian can open a PPF account for the minor child. The guardian should be any of the below:
- Mother or the father of the minor child
- Legal guardian like the grandmother, grandfather, uncle, aunt, etc., of the minor child in cases where any of the parents are not alive.
- A legal guardian in case the living parents are not capable of acting and operating an account.
For opening a PPF account for the minor child, proof of identity and residence of the parents/legal guardian is required. Along with that the following documents also needed.
- Birth Certificate of the Minor
- School Leaving Certificate of Minor, duly stamped by the principal of the school.
Declaration of PPF account
At the time of opening a PPF account for the minor child, the guardian or parent of the child need to declare his or her personal PPF account details. According to PPF rules, any individual cannot have more than one PPF account except for the PPF account of a minor child. It is always better to declare your PPF account at the time of account opening to avoid confusion. If the guardian or the parent is opening a PPF account for the second child and he or she and his or her first child already have a PPF account, he or she should mention both the accounts at the time of account opening. Do You Have PF Account? Here Are Changes That Should Make You Happy
The maximum amount that you can invest in the PPF account of a minor is Rs 1.5 lakh. If you are investing in the PPF account of your minor child, it is important to note that only one guardian/parent can claim the contributions for tax exemptions. You can deposit only Maximum Deposit Limit per PAN Card to the PPF account. How To Open PPF Account In SBI? Few Things To Know