New Rules: There has been a major change in the Public Provident Fund (PPF) account. Know in detail what it is and how it will benefit you.
Some changes have been made in the rules for premature closure of Public Provident Fund (PPF) account. For this, the department had recently issued a notification. As per the new rules of PPF rules, an account holder can request for premature closure of his account or the account of any minor person for whom he is the guardian on any grounds under the following conditions –
Treatment of life-threatening illness of the account holder, his/her spouse, dependent children or parents. The account holder will have to submit documents and medical reports confirming the disease with the help of the treating medical authority.
On production of documents and fee bills confirming admission to an eligible institution of higher education in India or abroad.
If the account holder shifts abroad. For this he will have to submit a copy of passport and visa or income tax return.
However, keep in mind that under this scheme the account cannot be closed before five years.
How will the interest be calculated?
Interest at the rate of 7.1 percent per annum (PPF Interest Rate) will be paid on PPP. Interest will be deposited in the account at the end of every year.
Account closing process
The account holder can apply to the account office for closing his account using Form-3. A request to close the account can be made at any time after the expiry of 15 years from the year in which the account was opened. The account office will process the withdrawal of the entire balance and interest.