PPF Account- Many facilities are available on PPF account. In such a situation, if the account becomes inactive, then the loan facility and partial withdrawal also stops.
PPF Account: Public Provident Fund (PPF) is a major means of investment in India. Due to great interest, tax savings and no risk of money sinking, a lot of money is invested in this scheme. Any Indian citizen can start investing in PPF from Rs 500 per annum. An amount of up to Rs 1.5 lakh can be deposited in a PPF account in a financial year. Tax exemption is available on investment in PPF under Section 80C. Also, no tax has to be paid on interest income and maturity amount. If the minimum amount of Rs 500 is not deposited in a financial year, the PPF account becomes inactive.
Many facilities are available on PPF account. In such a situation, if the account becomes inactive, then loan facility and partial withdrawal also stop. If your PPF account is closed, then there is no need to panic. It can be easily restarted. PPF account is not only a means of safe investment, but it also provides many other benefits along with tax savings and high interest rate. Therefore, ensure that your PPF account is not inactive and deposit the minimum amount in it every year.
How to activate your account
Go to the bank or post office: First of all, go to the bank or post office where your PPF account is open.
Fill the form: You will have to fill a form to activate the account again.
Deposit the arrears: You will have to pay the arrears amount for the years in which you have not deposited the money.
Pay the penalty: You will also have to pay a penalty of Rs 50 for every financial year.
How much will be the penalty?
Suppose your PPF account is inactive for 4 years, then you will have to deposit Rs 2000 (Rs 500 per year) for 4 years. Also, you will have to pay Rs 200 (Rs 50 per year) for four years.
You can close the account before maturity
In 2016, the government allowed closing the account before maturity in certain circumstances like life-threatening illness or child’s education expenses. However, this facility is available only after 5 years of investment.
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