In this article we have to discuss about the Nominations in Public Provident Fund or PPF. PPF, which stands for Public Provident Fund is an effective tool for small and gradual saving and comes with its excellent tax saving options. The contributions made towards PPF account are completely exempted from Income Tax under 80C and thus a lot of people looking for tax saving long term investment opt for PPF as the number one choice.
A PPF account can be opened in any nationalized and most of the private sector banks. You can also open a PPF account in any of the post office branches. The initial deposit required for opening a PPF account is just Rs 500 and managing a PPF account is super easy. You can deposit money to your PPF account whenever you have it and at any interval.
Nominations In Public Provident Fund
What is great with PPF scheme is that you can nominate one or even more people for your investment so that in case anything happens to you, the money can go for the welfare of your near and dear ones. A lot of our readers already have opted to open a PPF account and have nominated their wife and children for their account. Nominations in Public Provident Fund facility makes you feel secure about your family.
- How to nominate someone at the time of opening PPF account?
When you are applying for a PPF account, the account opening form would ask you to nominate someone for your PPF account. You can nominate any number of people for your account. A lot of married individuals nominate their spouses and children for their account.
However, you can nominate anyone . You can nominate your parents, your siblings or even your friends. You may nominate anyone who can claim the proceeds in the event of your death. Moreover, there is no limit on the number of people to be nominated for PPF account.
Nevertheless, you can allocate a particular share of the proceeds to each person nominated. There is a column on the form itself which asks for the percentage of share of proceeds you would like to nominate for against each of the nominees.
If you do not desire to nominate anyone, you can definitely do so by leaving the nomination column vacant while applying for PPF account. However, it is always advisable to nominate atleast one person for your PPF account.
- How to change nomination for PPF account which is active?
As per the scheme, you can change the nominations on your PPF account during anytime the course of your PPF account tenure. The processes, however, may change a little bit from bank to bank and provider to provider. Here, we are talking about specific process followed in SBI.
- The form for change of nomination is ‘Form E’
- Ask for this form at your respective branch and fill the form duly in the right format
- You would have to get signatures of the witness as well on this form. Witness could be anyone who knows you.
- In fact, there should be two witnesses and both of them should mention their name and address in the column provided on the form.
- The signature of nominees is not required
- Once the form is filled and signed by you and witness, submit it to the concerned official at your respective branch.
Nominations In Public Provident Fund account would be change within few days. You should also make sure that you get the nomination change recorded on your passbook as well.
- Cancellation of Nominations In Public Provident Fund
The process and form required for cancellation of Nominations In Public Provident Fund are the same. All you need to do is mention that you are cancelling the previous nominations on your account and that the new nominations to your PPF account should be as mentioned in this form.
- How do nominees get paid in the event of death of account holder?
If the subscriber accidently dies during or after the maturity of PPF account, the proceeds should go to the people nominated under the account. The nominees would have to submit Form G along with necessary proof of death of the account holder in order to claim the PPF maturity/proceed money.
Having said all, it is always important to nominate atleast one person on your PPF account. If you miss to nominate your PPF account with someone, the proceed amount in the event of your death would go to your legal heirs but not all money would be disbursed. Thus, you family would not be getting the entire proceed amount, but some.
In our article Nominations In Public Provident Fund we have to discuss every thing related to Nominations In Public Provident Fund. But if you have any query so read our article Public Provident Fund PPF FAQ or you can send us the comment.
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