New PPF Rules That You Should Know

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    PPF that enjoys the EEE status is a preferred choice among a lot of risk-averse investor class and to remain updated on the different changes made in it from a time to time basis will help you better plan your investments.

    So, some of the new changes include:

    New amendment to allow premature closure of PPF account:

    New amendment to allow premature closure of PPF account:

    As in the present case, the PPF account with 15 year lock-in period can only be closed prematurely once five financial years in the account since the opening of account are completed. But an amendment has been proposed which shall enable an investor to close the account prematurely in case of exigencies including medical or higher education.

    Small saving schemes merger:

    Small saving schemes merger:

    Due to the ambiguity that prevailed on account of presence of a large number of Acts as well as rules, the proposal has come forth to merge Government Savings Certificates Act, 1959 (which include National Savings Certificates and Kisan Vikas Patra) and the Public Provident Fund (PPF) Act, 1968, with the Government Savings Banks (GSB) Act, 1873. And in the process, no current benefit shall be taken away from the PPF investor.

    PPF account in case of physically infirm, differently abled persons and minors:

    PPF account in case of physically infirm, differently abled persons and minors:

    The new Act will now be more specific in relation to the operation of the PPF account in the name of the physically infirm and disabled person. Additionally, provision that boost saving habit among children through the PPF account shall be introduced.
    Also, the notification clarifies more on the rights of the nominee in case of the PPF account who is entitled merely as a trustee to receive the proceeds of the account in case the accountholder dies to pass on the benefits to the legal heir.

    PPF account can still be retained by Indian resident who turned NRIs:

    PPF account can still be retained by Indian resident who turned NRIs:

    The earlier notification which required individuals maintaining PPF account to close their accounts on change of their resident status to NRIs now stands temporarily dismissed. So, in case you hadn't closed the account on the earlier call by the authority, you can still continue investment in the safe tax-free instrument until a further notification comes on this

    Story first published: Monday, March 5, 2018, 10:23 [IST]
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