Public Provident Fund, an instrument which aims to mobilize small savings by offering reasonable returns, is one of the highest-yielding small saving schemes after the Employees’ Provident Fund. While the EPF is available to salaried people, the central government-run PPF can be availed by all earning individuals.
PPF investments have a tenure of 15 years and deposits up to Rs 1.50 lakh are exempted from tax deductions under section 80C of the Income Tax Act, 1961. A deposit of minimum Rs 500 in a financial year is required to keep the PPF account active.
If a PPF account is deactivated for some reason, mostly for failing to make the yearly deposit, it can be reactivated following a few simple steps.
Here’s how you can reactivate you PPF account:
1. The account holder will have to write an application and submit relevant documents to the facility – a bank or the post office – where the account was opened, requesting the designated authority to reactivate the specific PPF account.
2. Account holders will have to deposit the money and penalties for the delay in payments, if any, for the period the account remained inactive usually via a cheque.
3. The bank or the post-office will then scrutinize the request and on successful verification will reinstate it.
4. The request can be made any time during the 15-year life of the PPF account.
A PPF account cannot be revived after the 15-year period has elapsed. In that case, the amount already deposited will mature on completion of the time period and the account holder can get that money by paying the penalty imposed, which is Rs 50 for each financial year the account remained inactive.
More information about opening a PPF account can be accessed here.
Read all the Latest News, Breaking News and Coronavirus News here. Follow us on Facebook, Twitter and Telegram.
Comments
0 comment