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Who can Open a PPF Account?

Posted on October 01 2020



Public Provident Fund is classified as a small saving scheme and can be opened by an individual who is salaried or non-salaried, but no joint account can be opened under this scheme.
·   Individual: An individual can only open one PPF account to which he contributes. If you have a General Provident Fund account (GPF), or an Employees ProvidentFund (EPF) account then he can still have a PPF account. A PPF account can also be opened in the name of your wife or children. You can only have one PPF account in your life at any point. If you open more than 1 account and if it is seen then the second account will be deactivated and you will only get back the principal in return.
·   Minor: Account for minor can also be opened in their name through the guardian, i.e., father, mother or any person appointed by the court (only if the guardian is not there). The child is the account holder but the parents are the guardian. Grandparents are not allowed to open an account in the name of their Grand Children. PPF rules limit the investment to a maximum of Rs 1,00,000 in the PPF accounts of self and minor child together in a financial year. The account opened in the name of the minor and before the time period the minor attains majority then he himself will continue the account thereafter. The minor will submit a revised application form for opening the account to the Accounts Office and his signature will be attested by the guardian on the application form, who had opened the account for the minor or by a respectable person known to the Branch.
·   Hindu Undivided Family (HUF): HUFs was allowed to invest into PPF until 13 May 2005. After that, HUFs are not allowed to open a PPF but the existing account cannot be renewed after the expiry of the time period of 15 years.
·   NRIs:  NRIs are not allowed to open a PPF account. But, if a resident who already has opened a PPF account and later becomes a NRI then he can continue to hold the account and invest into it till the initial time period of 15 years until the PPF expires. Then the PPF account cannot be renewed and will require to be reimbursed. An NRI can only use the funds in the NRE account or the NRO account to make any investments in the PPF account. The investment made into the PPF will be on Non Repatriable basis only.
Tax Assist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.
With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.


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