New PPF rules: The Public Provident Fund scheme offers an attractive rate of interest and no tax is required to be paid on the contribution, interest earned and maturity proceeds.

50 percent withdrawal from the PPF account balance will be allowed any time after the expiry of five years from the end of the year in which the account was opened.  PPF account will not be liable to attachment under any order or decree of any court in respect of any debt or liability incurred by the account holder, said Jitendra Solanki, a Sebi registered tax and investment expert.
The Public Provident Fund (PPF) scheme is a popular long term investment option backed by the government of India which offers safety with attractive interest rates and returns that are fully exempted from tax. Investors can get facilities such as loans, withdrawal, and extension of account. A PPF account can be opened by resident Indian Individuals and individuals on behalf of minors.
How are Eligible for Opening PPF account
  • Indian citizens are eligible to open a PPF account.
  •  An individual can open only one account under their name. However, another account can be opened by the individual on behalf of a minor.

  • Non-resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not allowed to open a PPF account.

     

    New PPF rules 2019: Here are five major changes:

      1. With this new rule, now the PPF investors will be able to withdraw 50 percent of their fourth-year end balance. Earlier, a PPF account holder would able to withdraw 25 of the accumulated amount after seven years, Solanki said.
      1. The amount in the PPF account will not be liable to attachment under any order or decree of any court in respect of any debt or liability incurred by the account holder.
      1. There can be only one account in the name of a minor and joint account is now allowed.
      1. An account can be opened by the guardian of an individual or children with unsound mind, special needs.

    The maturity period for a PPF account is 15 years and accountholders may extend their account for a further period of five years or its multiple years. An individual can deposit minimum Rs 500 and maximum Rs 1.5 lakh in a financial year in PPF account.

    The maximum deposit limit is inclusive of the deposits made in the subscriber’s own account and in the account opened on behalf of the minor.

      1. Earlier, there was provision for opening PPF account in the name of a minor, but there was no clarity in the rule on this. In the new rule, it is more clearly specified, Solanki added.