Public Provident Fund (PPF) is one of the most popular savings-cum-investment products in India, the popularity of which is derived from its tax benefits and relatively secure nature. It offers an attractive interest rate on the principal amount, which is exempted from tax under Section 80C of the Indian Income Tax Act. As of now, the information regarding the ppf interest rate 2024 is yet to be disclosed by the government. In this article, we aim to guide you on how to nominate beneficiaries in your Public Provident Fund account.
A nominee is an individual who is legally entitled to claim the PPF account balance in case of the account holder’s untimely demise. Nominating beneficiaries is a straightforward yet frequently overlooked aspect of managing one’s PPF account.
- Procuring the Nomination Form: The first step towards nominating a beneficiary involves obtaining the Nomination Form (Form E) from the bank or post office where the PPF account is held. Alternatively, you can download the form from the official website of India Post or your bank’s website.
- Completing the Nomination Form: Once you have the form, you need to fill it out carefully. Essential details that must be filled include the names, addresses, and ages of the nominee(s). If you wish to nominate more than one person, you must specify the percentage share of each nominee.
- Minor Nominees: If the nominee is a minor, the account holder needs to appoint a guardian who will manage the PPF account until the minor becomes an adult.
- Verification of Form: Then, submit the filled out Nomination Form to the bank or post office. The personnel-in-charge will validate all the information provided by you, and the nomination process will be completed upon verification.
- Changing or Cancelling the Nomination: Account holders are free to change or cancel the nomination anytime during the PPF maturity period. In such a case, the account holder is required to fill and submit a fresh Form E.
- No Nomination: In case of no nomination, the legal heirs will be entitled to the lump sum upon the account holder’s demise. However, for amounts beyond INR 1,00,000, a Succession Certificate from the court would be necessary.
Governed by the PPF Act of 1968, PPF is a small savings scheme launched by the National Savings Institute, Ministry of Finance, Government of India. In case of the demise of the PPF account holder, the balance amount in the account will be paid to the nominee or the legal heir as the case may be.
Investing in PPF is an excellent option to consider due to various benefits like securing one’s future, providing financial stability, and availing tax benefits. Notably, the decision to invest in PPF should be based on careful consideration of various factors such as the individual’s financial status, long-term goals, risk tolerance level, and the PPF interest rate.
Disclaimer
Investing involves risks. Investors are advised to undertake due diligence and understand the potential risks and rewards associated with investing in the PPF account before making a decision. The information provided in this article is for generic purposes only, and we recommend consulting with a financial advisor before making any financial decisions.
Summary:
The Public Provident Fund is a popular savings scheme in India that offers tax exemptions and an attractive interest rate. This article provides a step-by-step guide on how to nominate beneficiaries for a PPF account. To nominate a beneficiary, an account holder needs to complete and submit a Nomination Form (Form E) specifying the nominee’s personal details. The bank or post office then verifies these details, completing the nomination process. Account holders can change or cancel their nomination at any time by submitting a fresh form. If a minor is nominated, a guardian must be appointed to manage the account until the nominee reaches adulthood. If no nomination is provided, the account holder’s legal heirs can claim the balance. The article also emphasizes the importance of considering factors like financial status, long-term goals, and risk tolerance level before investing in PPF. Lastly, it advises investors to consult a financial advisor before making any investment decisions.
