New Delhi:
Public Provident Fund (PPF) stands out as a lucrative government scheme offering compounding interest and tax benefits under Income Tax Act 80C.
If your PPF account has been closed due to insufficient minimum deposits, you have the opportunity to reactivate it.
Here’s a step-by-step guide to revive your PPF account:
Method to Reopen Closed PPF Account:
1) Visit the Post Office or Bank Branch
Head to the post office or bank branch where your PPF account is held.
2) Submit a Written Application
Provide a written application expressing your intent to reopen the PPF account. Include necessary details such as your account information and the reason for reopening.
3) Deposit Default Fee
Pay a minimum default fee of Rs 500 + Rs 50 for each year of closure. For instance, if your account has been closed for three years, deposit at least Rs 1500 along with a default fee of Rs 150.
4) Continue Regular Deposits
To keep the account active, ensure regular deposits according to the prescribed minimum limit. Remember, the loan and withdrawal facilities are not available on reopened accounts.
Benefits of PPF:
1) Universal Eligibility: Any Indian citizen, excluding NRIs, can benefit from the PPF scheme.
2) Investment Flexibility: Deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh annually, offering flexibility in investment.
3) Loan Provision: Avail a loan of up to 25% of the deposited amount between the third and sixth financial years.
4) Tax Advantages: Enjoy tax benefits under Section 80C of Income Tax, and the maturity amount is tax-free.
5) Government Management: PPF is directly managed by the government, ensuring the safety of your investment.
Make the most of the double benefits provided by PPF by reopening your closed account and continuing your financial journey.
