PPF is a government guaranteed scheme. Through this you can secure your child’s future. Know for children of which age PPF account can be opened.
If you want to invest in a scheme for your child in which your money is safe and you also get guaranteed returns, then PPF can be very useful. Public Provident Fund (PPF) is a government scheme. PPF matures after 15 years. In this scheme, a minimum of Rs 500 and a maximum of Rs 1.5 lakh can be deposited annually. At present interest is being given at the rate of 7.1 percent. In such a situation, you can secure your child’s future through this scheme. Let us know for what age children can open PPF account and can parents avail tax benefits on children’s accounts?
For what age children can an account be opened?
There is no minimum age for opening a PPF account for children, the account can be opened any time from their birth. The PPF account of children is opened by their guardian. Parents also invest in this. But after completing 18 years of age, the child can handle his account himself and invest in it himself.
Do parents get tax benefits on children’s accounts?
There is also a provision for tax exemption in PPF under Section 80C of the Income Tax Act. If you open a PPF account in the name of your children and deposit money in it, then you can get tax exemption under Section 80C of Income Tax. According to the income tax rules, if the amount deposited in the children’s account is earned by their parents or guardian, then they can also avail tax exemption on it.
How to open children’s PPF account
The form for opening a PPF account is available at the bank or post office where you want to open an account. First of all, fill the information required in the form. Along with the form, passport size photograph and KYC documents of the child’s parents or legal guardian will have to be submitted. Apart from this, certificate of the child’s age will be required. For this you can submit Bal Aadhaar, birth certificate obtained from hospital or any other government recognized date of birth proof. Submit the form along with all the documents. After this, PPF account will be opened in the name of the child. Many banks have also started providing the facility of opening PPF account online, but for this it is necessary for the child’s guardian to already have a savings account in the bank.
If you want to close before maturity…
PPF account can be closed before maturity only if you need money for the higher education of your child in the medium term. For this, the parents of the child also have to provide proof of getting admission in that recognized institute. But this facility of closing the account is available to the parents only after completion of 5 years of the account. Apart from this, even if the parents want to make partial withdrawal from that account, they will have to provide proof that the money is needed for their child.
