RBI to now open up UPI for digital wallets like Paytm and MobiKwik

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Apr 082017

RBI to now open up UPI for digital wallets like Paytm and MobiKwik

The RBI has announced a policy to integrate the digital wallets like Paytm and MobiKwik in the UPI payment system and make them inter-operable. This step will end the dependency of each platform and will allow users to make cashless transactions across several digital wallets, conveniently. The UPI framework opening will allow the wallet users to accept money from Paytm to their PhonePe account or send money from MobiKwik to Paytm, directly. This will expand more scope for the general masses to involve in more digital payment systems and bring a less-cash economy in the country. After the demonetization policy of the Modi Govt. in the November, 2016, Indian masses are getting used to these digital wallets and are using them for their daily transactions, regularly. So integration of all the wallets will help the peers to get more involved.

RBI to now open up UPI for digital wallets like Paytm and MobiKwik

Unified Payment Interface for digital wallets

The UPI transaction system has been widely used for money transfer from one bank account to other, with the help of a smart phone. Almost all nationalized banks have their own UPI apps for their valued customers which will help them in making digital transactions. One can make direct payments to merchants or pay utility bills. One can make direct bank transfers through the UPI payment system. Now, integration of the digital wallets like Paytm, MobiKwik, PhonePe, FreeCharge, etc. in this network will boost up business for both the wallet companies as well as help govt. in achieving more digital transactions among masses. At present, the digital wallets can only use the UPI system via a partner bank but does not have direct access to the system.

 Granting permissions of inter-operability to the digital wallets

The RBI is chalking up the working plan under which it will provide inter-operability to all the major digital wallets operating in India. This means, the wallets will tend to become platform independent and users of one digital wallet can transact with another user of separate digital wallet. This inter-operability will be achieved through the UPI payments procedure. As per internal reports, the RBI will grant the permissions for the digital wallets to join the inter-operable UPI platform, within the next 2 – 3 months. The move will be highly beneficial to all the digital wallet operators also as they will be able to grow their business more easily. Below are some of the steps which will be taken by RBI in the upcoming months to bring the digital wallets under the UPI umbrella:

  • Necessary guidelines will be issued by the RBI for all the wallet agencies operating within India for the inter-operability in the UPI framework. The digital wallets must follow those guidelines to become members of this big change.
  • Guidelines on the KYC documents for the digital wallets’ users will be issued shortly. As the UPI transactions involve direct bank to bank transaction, so KYC documentation is must. Till now, the digital wallet companies did not pushed for KYC documents from customers. Now, it will be mandatory for each company to get details of each and every customer by collecting and verifying their identity proof, address proof, etc.
  • There should be some interchange fees which will be applied on the wallets for opening up the inter-operability on the UPI framework. This interchange fees will be soon decided by the RBI and those wallet agencies who will take part in this system must adhere by these regulations.

Why inter-operability will be beneficial for the wallet operators?

This will be a great chance to open up for all the digital wallet agencies and shed down their platform dependency. The wallet companies have already shown their keen interest and welcomed the RBI’s initiative to allow the digital wallets to operate on the UPI network. This will be a win-win situation for all the wallet companies as they will not need to register both the customers as well as merchants under their platform. The inter-operability will definitely result in expansion of market and the wide promotion of digital payment ecosystem.

Collaboration of banks and wallets to stay

As the recent RBI move will make the wallets more independent, but this will not mean that the bank wallet relation will end up easily. The dependency of the wallets on the collaborated banks will surely reduce but will not terminate entirely. This is because, the movement of the money will still continue through the partnered banks. Also for other aspects like grievance redressal, settlements, reconciliation activities, the digital wallet agencies will need the help of the banks. Alternatively, the banks also need these wallets for getting more customers under their digital payments radar as these wallets have strong innovative technical teams which will be needed to making the system more stable. Several researched show that more transactions were recorded in digital wallets, compared to the UPI apps of banks. So the idea of collaborating the digital wallets with the UPI system will be a great initiative to achieve a less-cash economy.

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 Blog  Comments Off on PPF Vs ELSS
Nov 132016

PPF or ELSS! Which is best to invest in order to save taxes? 

India, where people are supposed to pay taxes a lot. Especially when it comes to Income tax, which is often referred as the tax which is collected by the government on basis of individual’s income amount, well there are relaxations from paying taxes from certain types of incomes. On accounting that employees across the nation urges to invest their hard earned money in order to skip paying taxes.

elss vs ppf

Annual Income Percentage of Tax should Pay
Annual Income up to Rs.2.5 Lakh No Tax for the Income
Annual Income above 2.5 Lakh Should pay 10% of their income as tax amount
Annual Income for the next 5 Lakh from the fixed limit of 2.5 Lakh Should pay 20% of their income as tax amount from the base limit of 2.5 Lakh
Annual Income beyond the 5 Lakh limit after the base of 2.5 lakhs 30% of their income earned beyond the 5 Lakh from the base limit of 2.5 Lakh

Ways to save Taxes

Investment experts across the nation suggest two main ways by which individuals can save their income amount from paying taxes to the government. According to the Indian section 80C investing in Equity Linked Savings Scheme (ELSS) and Public Provident Fund (PPF) are eligible for tax relaxations.

For the retired person who doesn’t want to take any kind of risk when it comes to investments activities then preferring PPF (Public Provident Fund) would be the best and apt option to move.

What is PPF?

Well PPF is well known as Public Provident Fund which can able to be referred as the savings and also the effective tax saving methodology in country like India. The PPF is introduced by the ministry of Finance in 1968, which is fully supported by the central government of India in order to conduct small savings among the employees with guaranteed returns along the benefits of tax relaxations in the name of Income tax.

Investment procedure followed in PPF (Public Provident Fund)

  • According the terms and conditions, each and every citizens of Indian are eligible for opening a Public Provident Fund account, and able to invest on their own interest.
  • In order enjoy the various benefits offered by PPF organization, investors from India should invest minimum amount of Rs.500 (yearly deposit) for availing valid PPF account.
  • Also investors from India are allowed to invest the maximum amount of Rs. 1.5 lakhs in their own self PPF account on every financial year.
  • According to the new rule which is amended few years ago, each and every PPF account holder must include guardian details for their PPF account. For new registers, guardian details are mandatory to be mentioned.

What is ELSS?

ELSS known as Equity Linked Savings Scheme is a type of investment where investors can invest their money with the lock period of 3 years. Also this type of investment option would enable investors to avail various tax benefits. For individuals who are about to invest up to 1 lakh is eligible to avail tax benefits.

Protocols to be considered while investing in ELSS:

In order to avail effective financial planning from incomes in the name of ELSS (Equity Linked Savings Scheme) individuals must consider the factors like Investors Age, Income amount, Financial Goal and Risk Appetite involved.

If the investor well aware of the handling those factors the verdict of ELSS mutual funds would offers more benefits apart from tax relaxations under the Indian penal section 80C.

Which is favorite for Availing tax Relaxation PPF/ELSS?

  • Well ELSS as early mentioned it’s fully loaded with risk as the investment would be done mostly in stocks, however, being a mutual fund scheme with the fixed lock in period. Investors would surely improve their wealth by investing in ELSS with the fixed lock in period.
  • On the other hand the PPF is the government supported firm which has zero percent risk factor in it. However, the interest rates which are offered under the scheme would various on basis of certain fixed time period. But the PPF scheme would ensure on lending the interest to its investors.


For retired person or any individual who doesn’t want to take any risk when it comes to investment then opting for PPF would be the right option. However, for employees with having more working years can opt to ELSS mode of investment as it provides more benefits in terms of finance.

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The amazing ways in which you can save tax legally

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Oct 152016

The amazing ways in which you can save tax legally

After the budget has been released a large number of people are wondering whether they shall be able to save any amount of money or not after clearing the different taxes implied on them. This article is going to offer certain tricks and tips that will be really effective in saving a considerable amount from the tax burdens. Check out the following tips to know the ways in which you can save your hard earned money.

  1. Remember that your taxable income is not the same as your income

We know that your employer are all aware about your complete salary and calculates the tax deduction according to that. But you can easily disclose details for any other taxable incomes like bank interests. This shall not be included while the calculation of your income and a certain amount of money shall be saved. Also you can opt for the tax benefits like tax exemptions within HRA.

  1. Use tax benefits for boosting your salary

It does not matter if it is your first job or the last, but the income tax that is deducted from monthly salary definitely hurts. Now, you can make use of the CTC components and different tax breaks. We know that everyone wants to live in their own house, but remember that if you have to make rental payment, then it shall offer you the “House rent Allowance” which is extremely beneficial in saving a good amount. Apart from that, you can also opt for the travelling allowances, education allowances and transport allowances.

  1. Make your savings work

To make the most of your savings, opt for the tax breaks. Within section 80C, there is a limitation of Rs 1.5 Lakh for investments. The New Pension Scheme is also a good choice in the present market which offers a good amount and monthly pension. This is going to be a fixed income for your future. A tax free interest is available if you can make a certain contribution to PPF.

  1. The home advantages

Home loan is the best option if you have a long time of work ahead of you. With the longer loan tenure, you shall have lower monthly EMI, but on a higher interest outgo. A deduction on housing loan shall be available within section 80EE. It is cheaper to book apartments which are still under construction and the total interest during pre0delivery is deducted within five installments.

  1. Group medical insurance

It is a fact that with the increase in hospitalization cost, you shall definitely need a medical insurance policy which would cover your family needs. The premium that is being paid by your employer for you and your family is completely tax free. And if you make a claim within this policy cover, the money that will be received is also tax free.

A tabular view of different tips to save money

SL NO Tips features
1. The taxable income is not same as your income Disclose the bank interests which shall not be included within your income calculation. This will save you a good amount of money.


2. Tax benefits The CTC components can be used and other allowances like House rent, educational and travelling allowances are good ways for saving taxes.
3. Make savings Check the new pension schemes; look for the contribution on PPF which offers a tax free interest of 8.7%.
4. Home loan advantages With longer tenure you shall have a lower EMI, on higher interest outgo. Also deductions are available on housing loans.
5. Group Medical insurance Opt for the medical insurance policies that cover family needs. Premiums paid by your employer shall save you a lot of money.

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PPF Account Form H (Extend PPF Account Form)

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Sep 302016

PPF Account Form H (Extend PPF Account Form)

If you are an earning person and if you are worried about your future, you must have thought of saving money. There are literally hundreds of investment options out there in market. From insurance to mutual funds, from share trading to government scheme – choices are so many that you will literally feel lost.

You aren’t alone in this cobweb. Every single person who thinks of investment, goes through this problem. So, how do you cope with it? You start with the safest option you have. PPF is the safest investment arena because it is government-backed.

So, if we are advising you on investing in PPF, there must be some solid reason for the same. Don’t you want to know? Yes, of course you do! We will skip the details of PPF because this article has a different purpose altogether. We will just give you a surface-touch view of PPF benefits and then you can Google for more details if you want to. But we are pretty sure that you already know about PPF. Consider this quick brush up as a refresher course for yourself.

So, what are the benefits of PPF which compels us to advise you for PPF investment? Here they are:

  • PPF is a government scheme. It was launched by central government of India. This means that PPF is immune to bankruptcy.
  • PPF allows loans. Don’t you take loans? How about loans at just 2% yearly interest? We have your attention right? Yes, PPF allows loan against standing balance at only 2% yearly interest. We are damn sure, no other financial organization in India can beat this rate.
  • PPF has provisions for premature withdrawal (though partial). This helps to deal with sudden financial cramps you can often experience in your balance sheet.
  • PPF follow EET rule of taxation. This stands for Exempt-Exempt-Taxed. What does that mean? It means that what you invest is not taxed. What you earn is not taxed. When you withdraw, you will be taxed. That is actually TDS or tax deduction at source.
  • PPF allows extension after maturity in 5-year blocks. No further investments are required but interest earnings continue.
  • PPF account cannot be liquidated by third party organizations (such as banks or other financial organizations). Even the court has no authority to pass a liquidation mandate on PPF account. Only government holds the right to do so to grab unpaid taxes or under other circumstances as deemed fit by the government. This however doesn’t happen unless you have tons of pending tax payments.
  • A yearly minimum of 500 rupees of deposit as mandated by PPF guidelines makes PPF a very easy-maintenance investment.

Now that we have covered some of the most vital benefits of PPF, we need to divert our attention to the actual topic of this article. So, what is this PPF Form H? This form is connected to one of the benefits mentioned above. Can you guess?

Well, we will spare you the trouble. This form is related to extension of PPF account post maturity. So, let us take a look at Form H.

All About PPF Form H

Let us lay down the ground works for elaborating on the Form H of PPF. We mentioned in one of benefits above that PPF account can be extended for a period of 5 years. Let us give you an example.

Let us assume that you opened your PPF account on 1st April, 2001. The account matured after completing 15 years of tenure. So, the account matured on 31st March, 2016. Now you want to keep the account instead of withdrawing the entire amount. In such a case, the following things can happen:

  • You can extend your account till 31st March, 2021.
  • You will not be allowed to make any further investments in the account.
  • Whatever money is present in the account will continue to earn interest.

Let us fast forward and assume that today is 31st March, 2021. Today you decide that you want to extend your PPF account again. In such case:

  • You can extend the account till 31st March, 2026.
  • Again, no further investments will be allowed.
  • Interest earning will continue.

You can do this as many times as you want. Just remember that:

  • Every time you decide to extend your account, your account gets locked for 5 years.
  • During these 5 years of extension, you cannot withdraw any funds. Not even partial withdrawal.
  • The account can be extended only in 5-year blocks – no less no more.
  • For further extension, you will have to make fresh application using Form H.

Hopefully we have explained properly how extension of PPF account works. Now, let us take a look at the Form H itself. As we said, this form is specifically designed for extension of PPF account. No other form can be used. But, what’s there in the form?

As a matter of fact, Form H is the easiest or simplest of all PPF forms.  There are only a few elements that you need to take care of. Let us take a look at each of the elements of the form in details.

You can download SBI PPF Form H from this link .

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 Blog  Comments Off on PPF Account Form G (DECEASED CLAIM)
Sep 162016


A person investing money in some financial product has, almost always, one of the following reasons in mind:

  • Financial security of the loved ones in case of his or her death.
  • His or her own financial security during the silver years, i.e. during the retirement days.
  • Tax savings.

While tax savings is always a reason, the other base reason can be either financial security of the loved ones or the person’s own financial security post retirement or both. Whatever the case be, there is one thing that everyone should remember while investing:

“Death is the ultimate truth of life. Everyone dies sooner or later. A person making an investment for his or her own financial security might not eventually be able to enjoy the fruits because of  sudden and unfortunate death.”

What happens to the money in such a situation? There are two things that can happen:

  • Either the money is lost and no one gets it. It is taken by the financial institution where the money has been deposited.
  • Or, a war of ownership begins between legal heirs. In this case, things can get a bit messy – you know very well what we mean! Don’t you?

The PPF account investments are not shielded against these problems and hence, it is always wise to keep nominee so that all the messy battles of ownership are avoided. However sometimes, people do not appoint nominees and in such situations a legal heir has to claim the fund by furnishing proper documents. If proper nominee(s) are there claiming the money becomes simple.

Either way, in the unfortunate case of the death of the PPF subscriber, one has to fill up the Form G in order to be able to claim and withdraw the funds. Filling up this form is mandatory and without this – whether a claimant is a nominee or a legal heir – the bank or the post office will not release the funds.

So, it is time that we take a close look at PPF Form G and learn all about this form in details so that if you are trying to claim the PPF funds of a deceased, you will know what exactly you need to do while filling up this form.

All about PPF Form G

Before we start discussing about PPF Form G in details, we need to mention that we will be creating four different tables in this section comes with three different annexures which are required for legal heirs in case of absence of a proper nominee. So, the first table will focus on the actual form while the remaining three will focus on the annexures. So, let us begin:

You can download SBI PPF Form H from this link and Post office from this link

Actual PPF Form G
Form G elements Explanations for each element
Declaration This is the segment where the claimant(s) need(s) to declare the relationship with the deceased subscriber of the PPF account. Also the PPF account number has to be provided along with the declaration. This is mandatory. In absence of the PPF account number, nothing can be done and bank or the post office is not obligated to pay any money to  anyone claiming the funds.
Enclosed section This is a section where several documents are to be enclosed along with the form. Remember that not all of the mentioned documents will be required. What is required depends on the relationship of the claimant with the deceased person. Let us take a look at what has to be enclosed:
1. Death certificate of the deceased subscriber.
2. If any of the nominees appointed by the deceased subscriber is also dead, a death certificate for that dead nominee is to be provided too. If there is no dead nominee, this one is not required.
3. A succession certificated issued by the High Court is to be provided by the claimant in case the deceased subscriber has left no nominee. If there is/are nominee(s), this too is not required.
4. The passbook of the PPF account of the deceased person is to be provided.
5. If there is no nominee but a legal heir is claiming the money, a letter of indemnity is to be provided. This letter will not be required if there is a proper nomination.
6. A proper affidavit is to be provided by the legal heir claiming the money. This too is not required if there is a proper nomination.
7. An affidavit disclaimer letter must also be provided by the legal heir claiming the fund. In case of proper nomination, such a letter will not be necessary.
Date and Place The applicant (nominee or a legal heir) has to provide the date and place. The place refers to the city or state where the funds are being claimed and the date is the day on which the claim is being made.
Signature The person claiming the fund needs to provide his or her signature or in case the person doesn’t know how to read or write, he or she can provide a thumb impression. In case of multiple nominees or claimants,  signatures or thumb impressions of all of them will be required.
Section for bank branch or post office use In this section the bank branch or the post office will declare that a settlement amount (which is full and final) of certain amount against PPF account number (as provided by the applicant) has been made though a demand draft or bank cheque (DD or bank cheque number is to be provided) on the given date in favor of  the bank (name of the bank). This section is to be used by the bank or post office only.
Date and signature of the service manager or the bank branch manager is to be provided too.
A money receipt The claimant has to provide a money receipt to the bank or the post office. This section is also included in the form and the bank or the post office will be retaining it.
This section mentions the amount that has been received by the claimant from the bank branch (name or the bank branch is to be mentioned). This is also a declaration that full and final settlement has been made.
A rupee 1/- revenue stamp is to affixed in the provided place. This stamp is to be carried by the claimant or perhaps it can be provided by the bank or the post office.
Date and signature(s) of the nominees or the claimant(s) is to be provided to.

Now that’s the whole of PPF Form G. There is nothing else in the actual form. However, there are several annexures as mentioned earlier. These annexures are mentioned in tables below:

Annexure I – Indemnity Letter
What is indemnity letter? It is a letter guaranteeing that contractual povisions have been fully made. If it is found that some of the provisions have not been met, financial reparations will take place.
Elements of the letter Explanation
Declaration In case the claimant is not an appointed nominee but just a legal heir, he or she or they has/have to provide this letter declaring that the bank/post office is paying him/her/them (names are to be provided) the standing amount in the PPF account (the account no. has to be mentioned) even though a proper letter proving the legal succession or administration has not been offered by the claimant(s).
The claimant(s) also need to declare (providing their names) that if there are any legal consequences and that the bank or the post office has to bear any financial burden because of paying out the money, the claimant(s) will be responsible for paying back that money to the bank/post office.
The final declaration is that the claimant(s) declare to have put their hands at the money of the deceased subscriber on the date (date has to be mentioned discreetly) of a given month and a year.
Counter signed by Surety A surety is a person who takes the responsibility of the action of another person. Two sureties are to provide their details (name and address) as well as their signatures.
Counter signed by witness Two witnesses are to provide their details (names and address) along with their signatures.
Notary signature and attestation A notary has to attest the letter and has to provide a seal/stamp and his or her signature.


Annexure II – Affidavit
What is an affidavit? An affidavit is a written statement which is considered as an affirmation or an oath and can be used in court.
Elements of affidavit Necessary explantion
Declaration 1. The claimant(s) need to declare themselves as husband or wife or son or daughter of whoever (their respective spouses and parents) along with the residential address
2. The declaration should mention that the claimant(s) are the only legal heirs of the deceased person (subscriber) whose name is to be provided and that the claimant(s) are the only representatives of the estate left by the deceased subscriber.
3. The deceased person (name of the subscriber is to be provided) did not leave behind any will and that the claimant(s) are the only successors who are left.
4. There is a section where all the claimant(s) need to provide their names and their signatures. The signatures are to be provided above the word ‘Deponents’. Deponents means the people who are providing the affidavit.
Verification section This is the section where the deponents need to declare that the information provided in the affidavit are true to the best of their knowledge and that it contains no fabricated information or no material information has been deliberately fabricated. In this declaration the name of the place where this affidavit is being created and signed is to be provided.
Also, the names of each individual deponent and their signatures are to be provided. The signatures are to be provided right above the word ‘Deponents’.
The date on which the verification is given is to be provided as well.
Attestation This is the section where an oath commissioner has to attest the affidavit with his/her seal and signature.


Annexure III – Disclaimer Letter on Affidavit
This letter is to be provided by the spouse(s) or child(ren) of the claimant(s) who claim the PPF fund of the deceased subscriber. In short, it is a declaration that the spouse(s) or child(ren) of the claimant(s) are relinquishing their rights on the money
Elements Explanation
Declaration by spouse(s) The spouse(s) of the claimant(s) need(s) to provide name or their names along with full residential address.
Declaration by child(ren) The child(ren) of the claimant(s) need(s) to provide name or their names along with full residential address.
Affirmation A solemn affirmation that the person or the subscriber (name is to be provided) died on (date is to be provided) and that they (spouse(s) or child(ren)) are relinquishing their rights to the claimant(s) for the balance of rupees (the rupee amount is to be mentioned) once that amount has been realized from a demand draft or check (the DD or bank check number is to be provided) that was issued on (date of the issuance of the DD or bank check is to be provided). Further it has to be declared that the spouse(s) or child(ren) have no objection in the bank or the post office issuing the money in the PPF account (account number is to be provided) to their spouse(s) or parent(s).
Name of the people providing this disclaimer letter is to be provided along with their signatures right above the word ‘Deponent(s)’.
Verification section This letter of disclaimer is also an affidavit and hence the verification section is mandatory wherein the spouse(s) or child(ren) of the claimant(s) are required to mention that the information they have provided is not fabricated and that they have not concealed any information whatsoever. They need to provide their names and their signatures. The signatures are to be provided above the word ‘Deponent(s)’.
The date for this declaration is also to be provided.
Attestation This is the section where an oath commissioner has to attest the affidavit with his/her seal and signature. The date must also be provided.

That concludes everything about Form G of PPF Account and all its annexures. In case you have any question or concern, feel free to drop us a comment and we will revert back to you as soon as possible.

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PPF Form F (Changing nomination information)

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Aug 302016

PPF Form F (Changing nomination information)

Now that you are reading this article, we will make a couple of assumptions. These assumptions will be:

  • You already know about PPF and you have a PPF account or you are planning on opening one.
  • You need to know how you can change the nomination in a PPF account.

The question here is, ‘why would you want to change the nomination?’ There can be a number of reasons for the same. For instance:

  • One of the nominees you selected died.
  • You no longer see a person as a fit one to be your nominee.
  • You are possibly no longer in good terms with one of the persons you appointed as a nominee.
  • May be you want to redo the percentage of money you allocated for your nominees.
  • Perhaps you simply want to update the information about or or more nominees.
  • In case your nominee is a minor, you may wan to update the information of the legal guardian who will take control of the money for an interim period until the minor becomes an adult in and unfortunate event of your death before the PPF account matures and the nominee is still a minor.

Whatever the reason may be, the need for changing nomination information may just show up. If anything like that happens, what are you supposed to do?

Good News:

  • Changing nomination information is possible.
  • Nomination information can be changed anytime during the whole tenure of the PPF account.
  • Changing nomination information is simple and there is no complex procedure in place.

Bad News:

  • You will have to fill up a specific form and fill it up.
  • You will have to manually visit the bank or post office where your PPF account is located and submit the form.
  • You will to appropriately select the form provided by your bank or the post office because the form from one organization will not be accepted by another organization.

Good News:

  • The nomination form for each organization – a bank or a post office is available online.
  • You can download the form, take a print out and fill it you. You don’t need to go to the bank or the post office manually to collect the form.

All about PPF Form F

Okay, now that we know that changing nomination information in a PPF account is not difficult, let us take a detailed look at the form that is used for this purpose. This form is known as Form F. There are several elements of this form and we will take a look at each element of Form F with proper explanation in a tabular format.

Elements of Form F Explanation for each element if required
Account Number The PPF account number is to be furnished on the very top of the form in the heading section. This is mandatory.
Date and Addressing Under the header is the place where you need to put to date on which the application is being made. On the right will be the addressing section. This section actually means that you will have to address the agent or manager or official of the bank or the post office where your PPF account is located.
Declaration This is where you will have to declare that you – the subscriber – wants to cancel or alter the nomination information that was previously submitted for the PPF account number you hold. This means that you have to give three information. First, your name. Second, your PPF account number and third, the date on which the previous nomination(s) was made.
New list of nominees In case you wish to cancel all previous nominations or just alter some information like change in details of the nominees, percentage of money they should get etc., you need to make use of the table that is given below the declaration section. If only alterations are made, make sure that you maintain the same order as your previously used and then change whatever information you want to change. If you are providing a fresh list of nominees, you can use any order you want to.
In case of minor nominee If you appointed a minor as a nominee and you want to change some information about the legal guardian, the next section is to be used only in that case. However, if the nominee changes but the legal guardian is not changing, there is no need to use that section. Also remember that if you are actually changing the nominee but not the legal guardian, you should place the name of the nominee in the same serial number oder as before. Simply put, if the minor nominee was in serial no. 3 in previously submitted nomination form, make sure that in this new form too, the name of the minor nominee is put in serial no. 3.
Witness information In case you are changing the nominees or making changes in information of the nominees previously appointed in presence of witnesses, you need to use this section. Witnesses are not mandatory but can be used. The name and address of both witness should be provided and also the witnesses will have to provide their signatures.
Your signature You will have to provide your signature. In case you wish to use your thumb impression, you are free to do so as well. However, thumb impression is usually for uneducated people who cannot write and cannot sign.
Accounts office use This is the final section which will clearly state that the section has to be used only and only by the accounts office. This section is meant for official use and you are not supposed to do anything here. The accounts office will make a declaration here that the changes or alterations have been duely noted in PPF passbook and the ledge. The officer needs to put a date an his/her signature.

Now that is pretty much everything about PPF Form F. In case you have anything to add or in case you have any question, feel free to inform us through our comments section. We will be glad to answer or respond to your query or information.

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All About PPF Account Form E (Nomination Form)

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Aug 222016

All About PPF Account Form E (Nomination Form)

What is PPF? Why should you invest in it? What are the benefits of investing in PPF? What kind of interest earnings are to be expected from PPF? How many times have you asked the above questions? Perhaps a hundred times or more! The reason for asking these questions is simple. You want your money to safe because earning money is not easy but it can be lost in a blink of an eye. It is because of this reason you want to ensure that your investments are safe and they offer proper returns that are satisfactory.

As far as the aforementioned questions are concerned, let us pick them up one by one and answer them. Once we are done answering those question, we will take a detailed look at Form E associated with a PPF account. That sounds okay? If so, let us begin!

What is PPF? PPF stands for Public Provident Fund – a small investment scheme that was launched by central government of India a long time back. It is referred to as a small investment scheme because a person investing in PPF is not required to invest large sums of money. A person can invest INR 500 in a year and keep the account open and running. Just like a floor has been set for minimum yearly investment, there is a ceiling for maximum yearly investment too. A person is not allowed to invest any more that INR 150,000 in a given financial year.

Why should you invest in PPF? Security of an investment you make should be your paramount concern. Let us take it this way – you bought a car. Will you ever want it to be stolen or damaged? No, you won’t! You will want your investment, i.e. the car to stay safe and hence, you will buy a car insurance to safeguard it against perils like theft or accidental damage. You will place it in a garage behind locked doors when not in use and so on… so, you will basically want to keep your investment safe. The same applies for financial investments where investments and returns are both in cash. PPF is one such investment. Luckily, it is extremely safe. Since the scheme is a government scheme, it has no risk of bankruptcy. Governments don’t go bankrupt that easily. At least in independent India, there has not been any instance of government bankruptcy till date. So, all the money you invest in PPF is safe.

What are the benefits of investing in PPF? Not one, not two… there are actually several benefits of investing in a PPF account. Apart from the security side, here is a quick list of other benefits you can enjoy once you open a PPF account:

  • It acts as a retirement fund or corpus.
  • It cannot be liquidated even with a court mandate.
  • It allows taking out loans against the fund in account at extremely low interest rates.
  • It allows partial withdrawal.
  • Investments are not taxed under income tax provisions.
  • The interest earnings by the deposited funds are not taxed either.
  • Has amazing flexibility when it comes to investment modes – cash, check, DD, electronic funds transfer etc. are all available.
  • It can be opened through a bank or a post office, whichever is preferred by the investor.
  • Small investments ensure that there are no defaults in yearly investments.
  • In case a PPF account becomes inactive because minimum annual investment was not met, the account can be easily revived.
  • Allows nomination.
  • Allows opening an account in name of a minor.

What kind of interest earnings are to be expected from a PPF account? Now this is a bit of a tricky question. It was easier to say this earlier because the government used to announce the annual interest rate at the very beginning of a fiscal year. As of today, small investment schemes including PPF operate on flexible interest rates. This means that the interest will be determined by the market. Put in other words, PPF is now market-linked. However, the government will still keep the interest rate fixed for every quarter of a fiscal year instead of allowing daily adjustments.

Now that we have covered some of the basics of PPF, let us take a look at Form E of PPF. Remember that we mentioned about nominations? That’s one of the benefits but for nomination to work, you will have to fill up a form. Let us now take a detailed look at the form itself.

All about PPF Form E

The PPF Form E has 7 sections out of which, you will have to work on 6 of them while the 7th option is meant for official use. Official use means that either the bank officials or the post office officials will fill up the 7th section of the form. Now let us take a look at each element of the form in a tabular format for easy understanding.

Form Element Description if required
A declaration This is where you will have to declare that you (your name has to be provided) are appointing nominee(s) who will get money in the PPF account no. (the account number is to be provided) in the event of your death before the term of the PPF account is completed. Just in case you are not aware, a PPF account has a term of 15 years.
Nominees In this section you have to give the name, address and the proportion of the accumulated fund a nominee should get in case you select multiple nominees.
In case you are appointing a minor as a nominee, you will also have to mention the date of birth of the minor nominee.
You are free to select multiple minor nominees.
Even if you are selecting minor(s) as nominee(s), you will have to mention the proportion of the fund the minor(s) should get.
Fund transfer to minor nominee(s) This is where you need to declare that if you die before the PPF account matures and the minor nominee(s) are still minor, the money allocated for the nominee(s) is to be given to an appointed guardian whose name and address are to be provided in the space allocated on the form.
Witness details The nomination declaration is to be done in presence of a two witnesses (though not mandatory). In case you are using witnesses, you need to give the names and addresses of the two witnesses. Two witnesses also need to provide their signatures in the approprite fields.
Subscriber signature This is where you will have to provide your signature. You can also give your thumb impression (usually thumb impression is for those who cannot read or write).
Date Of course, you need to provide the date on which you are making the nomination selection.
For official use As we said earlier, there is a section for official use. This is where the bank or post office official needs to declare that the nominations have been registered on the specified date (the date has to be given) and the appropriate entries have been made in PPF passbook along with nomination number (this number is to be provided by the official). Finally the official has to provide his or her signature and date.

That is pretty much everything about PPF Form E. If you have any query, feel free to drop a comment. We will revert back to you as soon as possible.

You can get SBI ppf form e Form this link.

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All About PPF Form D (Loan Application Form)

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Aug 102016

All About PPF Form D (Loan Application Form)

PPF – the most popular small investment option available in market – is one of the very few financial investment vehicles where security of invested money is at its best. Why so? That is because the Public Provident Fund or the PPF is a government-back investment vehicle. No matter what, the chances of this investment being lost are same as the probability of the entire Indian economy going for a toss and entering the realms of irrecoverable depression.

How often do you see that happening? Not frequently! The last time this happened was in 1930 when the whole of world economy slipped into Great Depression. The 2008 depression that plagued America and some of the European nations did not manage to find a hole in Indian economy, which continued to grow at a steady rate.

Therefore, PPF is by far one of the most secure investment options you will come across. This benefit is not the sole benefit that PPF has to offer. There are a number of other benefits, which make PPF a very rewarding investment area. Let us take a quick look at some of the benefits that PPF account holders enjoy.

Benefit 1: You can enjoy loans

Once your PPF account attains the age of 3, you can apply for loan. You can continue applying for loans until the account reaches its 6th birthday. However, you need to remember that you can apply for loan for the second time or every subsequent time only if you have repaid the previous loan in full. Else, your loan application will be rejected.

Benefit 2: Loans are available at lowest interest rates

Can you ever find a bank or a financial company that offers loan at a rate of 2% yearly interest? Well, that is simply not possible! However, this is what you get when you take out a loan against your PPF account. Isn’t that incredibly low rate of interest?

Benefit 3: You can enjoy partial withdrawal of funds

You may say, ‘hey, this feature is available with other investment products too’! Of course you are right and PPF offers the same too. Once the account hits its 7th birthday, you can apply for partial withdrawal of funds from the account. This can help to accommodate sudden financial crunches one can face at times.

Benefit 4: You get to save taxes

You know what? We call the income tax department a devil. It always eyes for taxing our hard-earned money. PPF account helps you to save a good amount of money that would otherwise be lost in form of tax on already earned money. Moreover, it also helps you to evade taxes on new income in form of interest earnings. What does that mean? Allow us to give an explanation. PPF account investments up to 1.5 lakhs per year will not be taxed. Also, a PPF account earns interest rates on the money present in the account. This is your income. However, this income is not taxed by the IT department.

Benefit 5: No one touches your PPF investments except you and the government

This is one really great thing about a PPF account. Not even a court can mandate to liquidate your PPF account. But hey… wait! Where is this court mandate coming from? Look, it may happen that one day you take out a loan from a bank and then you fail to pay it back. The bank will try every means to recover the loan money from you. The final resort is to send a legal notice and take shelter of a court. That is when a bank can pass a mandate, authorizing the bank to liquid all your financial accounts and recover the money. Even if, unfortunately, such a scenario occurs, the court will not have the authority to authorize the bank to touch your PPF account. It will remain safe even if all other financial accounts are liquidated. Only and only the government is the third party which has the authority to touch your PPF account. The government will however do so under very special circumstances like – collecting unpaid taxes. Apart from special scenarios, even the government will not touch your PPF account. Isn’t that amazing?

Well, now that we have gone through various benefits of having a PPF account, let us turn our attention to the Form D that is associated with PPF account. So, what is Form D? Let us find out in details in the section below:

All About PPF Form D (Loan Application Form)

Remember one of the benefits of taking out loans against your PPF account? Well, you just cannot walk up to a bank or a post office where your PPF account is located and declare that you need a loan against your PPF account. You need to follow the proper documentation process and apply for a loan. The application form that you need to use is known as Form D. Without filling up this form, you cannot get a loan and even your loan application without a properly filled Form D will not be acceptable.

Now that we know the purpose of Form D, let us take a look at the different elements of the form and find out precisely what you can expect from this form.

You can get SBI PPF Form D from this link.

Elements of Form D Necessary Explanation Additional Explanation (if required)
Subscriber’s Usage Area (basically declarations) Sub section 1: The subscriber needs to declare how much loan he or she wishes to take against his or her PPF account. The account Number has to be properly mentioned too. NA
Sub section 2: The subscriber needs to declare the amount of loan he or she had previously taken against the account and the date on which the loan was repaid in full. Also, the total amount repaid along with interest is to be clearly mentioned in this sub section. Remember that a person taking out a loan against a PPF account has to repay the entire loan along with interest within 3 years from the date on which the loan was disbursed.
Sub section 3: This is where the subscriber needs to declare that in case the loan is taken against a PPF account on name of a minor (who is alive and is still minor), the loan money will be used only and only for that minor. NA
Sub section 4: Just a statement stating that the PPF account passbook is attached with the application. The subscriber has to provide the passbook along with the application form. NA
Official Usage Area (Office can be a bank or a post office) First item on list: This is where the date on which the PPF account was opened will be mentioned. NA
Second item on list: This is where the total balance in the PPF account will be mentioned. NA
Third item on list: This where the loan amount that can be approved will be mentioned. NA
Fourth item on list: This is where the total loan that is actually sanctioned will be mentioned. NA
Finally, the date and signature of the service manager will be given. NA
Declaration by subscriber This is where the subscriber and the bank/post office will work together. It will mention the loan amount that has been sanctioned along with the PPF account number. NA
A revenue stamp has to be attached in the specified area. NA
Date and thumb impression or signature of the subscriber will be required in specified fields. NA

That is pretty much everything that you need to know about PPF Form D. In case you have any other concerns or questions, feel free to drop a comment and send your query to us. We will try to revert back as soon as possible.

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PPF Account Form C (Partial Withdrawal)

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Jul 142016

PPF Account Form C (Partial Withdrawal)

So, you are thinking of investing in PPF? There must be very good reasons for such a decision. Just in case you are about to invest in PPF simply because one of your known acquaintances have done so, it is strongly advised that you make an informed decision. Following the footsteps of someone in this matter will not let you down but knowing and then investing will give you a peace of mind. So, let us walk you through a brief description of PPF and then we will let you know about the PPF Form C in details.

For this article, we will make use of two tables. The first table will give you a bird’s eye view of PPF summary and the second table will lay down the details of Form C. Are we good to go? Very well! Let us begin then.

A Brief About PPF

In this section, we will learn a few tidbits about Public Provident Fund, popularly known as PPF. We will first lay down the foundation which will allow us to elaborate the second part of the article that will focus on Form C.

Features Explanation
Security Launched and maintained by government and hence, completely secured.
Investment type Small investment.
Account tenure 15 years.
Deposit for account opening (minimum) INR 100.
Minimum deposit to be made in a year INR 500.
Maximum deposit allowed in a single fiscal year INR 150,000.
Deposit installments allowed in a year 12 maximum.
Account deactivation Upon failure to deposit minimum yearly investment.
Account reactivation Allows along with penalty.
Deposits allowed in form of Cash, cheque, online bank transfer, DD.
Withdrawal Complete withdrawal only after tenure completion.
Partial withdrawal Only after 7 years of age attained by the PPF account.
Tax benefits Investments up to INR 150,000 are not taxable. Interest earned by PPF account is not taxable. TDS deductions take place on withdrawal.
Loan facility Loans can be taken out against PPF account from 3rd year of PPF account till 6th year of PPF account.

Okay, now that we have a brief understanding of what PPF account is what facilities one can enjoy from a PPF account, it is time to turn our attention to the actual purpose of this article – details of Form C.

All About PPF Form C

The first question that pops is, ‘what is Form C meant for?’ Well, it is designed for partial withdrawals. In case a person wants to make partial withdrawals, he or she needs to fill up this form and submit. Only then withdrawals can be made. Let us take a quick look at the elements of Form C is a tabular format to find out what is to be done while applying for partial withdrawals.

Elements and Attributes of Form C Necessary Explanation
Name and purpose Form C. Designed as a partial withdrawal application form from a PPF account.
Segments in form Total three – Declaration section, office use section and bank details sections where the money with be transferred.
Declaration section – has three sections usually First section – the applicant needs to provide the PPF account number and the amount of money that he or she wishes to withdraw. Along with that, the person also needs to mention how many years have actually passed since the account was first opened.
Second section – this is not mandatory unless the withdrawal is being requested from the PPF account that is being operated in the name of a minor. The applicant needs to declare that the amount being withdrawan will be used for the minor (who is either alive or dead).
Third section – nothing to be filled here. It is only a statement which says that the PPF passbook has been enclosed along with the application. This means that the applicant has to provide the passbook.
Office use section – the office needs to fill this up with the following details Date when the PPF account was opened.
Total balance standing in the PPF account.
Date on which the previously requested withdrawal was allowed.
Total withdrawal amount available in the account.
The amount of money sanctioned for withdrawal.
Date and signature of the person in charge – usually the service manager.
Bank details section – this section asks for the details of the bank where the money is to be credited directly or the bank in whose favor the cheque or the demand draft is to be issued The first part clarifies the amount that will be given from the PPF account in question.
The second part is where the subscriber needs to select either the account where the money will be credited or the bank in whose favor the DD or the cheque will be issued. Whichever is selected, the person or the subscriber needs to provide the details accordingly.
A revenue stamp is to be pasted on the allocated space.
Date and thumb impression or signature of the applicant/subscriber or the guardian (in case the account belongs to a minor) is to be provided.

Where is PPF Account Form C Found

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PPF Account Form B (Payment Form)

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Jun 262016

PPF Account Form B (Payment Form)

Talk of investments can PPF is a name that shines bright and clear in the skies of finance. This is one area where almost everyone invests because of one vital reason – secuirty. Being a government scheme, the likelihood of losing the money invested in PPF is almost nil. The only scenario where the money will be lost when the entire economy slips into depression and faces complete economic meltdown. However, such scenarios are extremely rare and since the Great Depression of 1930 that plagued the entire world, India has no known history of economic meltdown.

PPF Account Form

Well, coming back to PPF, apart from security, there are a number of other reasons which allow a person to blind-foldedly invest in PPF. Let us take a quick look at some of the interesting features that make PPF a lucrative investment destination:

  1. Tax Savings: The money that is invested in a PPF account is not taxed by Income Tax department. The maximum cap is however set at INR 150,000. Any investment above that amount will attract taxes.
  2. Interest Earnings are Tax-Free: Just like the investments are free of taxation, the money earned by a PPF account in form of interest earnings is also free of tax. This means, whatever money is earned by a PPF account in a year, it will not be counted as income of the account holder.
  3. Loan Feature With Lowest Interest: There is a feature under which (though subject to certain time limitations as well as loan amount limitation), a PPF account holder can actually take out loans against the PPF account. The loan is offered at a meagre rate of 2%, which is the lowest in market. This makes loans agains PPF accounts an attractive line of credit.
  4. PPF is Now Market Linked: This simply means that instead of a pre-defined interest rate for an entire year, PPF will not derive interest from market fluctuations. This means that if the interest rates in market goes up, PPF will offer higher interest rates. A downside however is that once the market interest rates go down, PPF will offer lower interest rates. This is when a person might think that a fixed interest rate system was far better.
  5. PPF Cannot Be Touched By Creditors: Taking out loans is a common practice all over the world. Indians are no different. However, what if a person defaults on loan repayment? In such a scenario, a creditor may take a legal step and a court can actually give a mandate by which the creditor will get full right to liquidate all the accounts of the debtor and retrieve the money. However, PPF account is one account that cannot be touch. Even the court cannot pass a mandate to liquidate a PPF account. Only the government will have the right to liquidate a PPF account in case there are outstanding tax liabilities.

There are many for features which makes a PPF account a go-ot investment area for every Indian. On top of that, it is actually a small investment product which means, a person is not required to make heavy investment. There is a yearly minimum and a yearly maximum defined and investments can be greater than or equal to the minimum or less than or equal to the maximum limit. This means, any average income person can invest in PPF and accumulate a retirement corpus.

Now that we have a brief understanding of what PPF actually is, it is time that we divert our attention to Form B. This is precisely what this article is designed for. So, without further ado, let us take a look at the details of Form B.

All About PPF Form B

The PPF Form B is actually a pay-in slip kind of thing. This is a form which is used for making a payment towards the PPF account. This form is very simple and clean with no complexity at all.

Let us take a look at different elements of PPF Form B and find out what to expect in the same. For this purpose however, we are going to make use of a tabular format, which will make life easy for anyone reading this article.

Form B elements Explanation for each element
Counterfoil 1 This is the left hand side of the form which is meant for retention by the PPF account holder.
Counterfoil 2 This is the right hand side of the form which is meant for retention by the bank of the post office where the PPF account is located.
Subscriber Side: Counterfoil 1
Branch name This is the bank of the branch where the money is being deposited.
Date This is the date on which the money will be deposited.
PPF account number This is the PPF account number in which the money will be deposited into.
Amount deposited for subscription Money can be deposited for the first time PPF subscription. If so, only this field is to be used and the total amount is to be mentioned.
Amount deposited for loan repayment If a payment is made for repayment of the loan, this field and the next field are to be used. This is the place where the amount paid towards repayment of the principal loan amount is to be mentioned.
Amount deposited as interest on loan This is the field where the amount paid towards the repayment of interest charged on the loan is to be mentioned.
Amount deposited for penalty or fees If for some reason the account got deactivated (actually the only reason is non-payment of the minimum yearly investment) and the subscriber wishes to reactivate the account by paying the penalty amount and/or any other fee, this field is to be populated with the amount that is being paid towards the reactivation of the account.
Amount to be mentioned in words This is the field where the total amount is to be mentioned in words. For example, if the deposited amount is INR 2000, in this field one has to input: “Rupees Two Thousands Only”.
Cash details – denomination of notes If the money being deposited is paid in cash, the number of notes of a particular denomination are to be mentioned in this field. For example, if a person is giving one 1000 rupee note and two 500 rupee notes, the input fields will have 1000 x 1, 500 x 2 etc. The total amount for each denomination is to be then given in the adjacent field.
Cheque or DD number and date If the money is being paid in cheque or demand draft, this field is to be used. The cheque or demand draft number is to be clearly mentioned along with the date on which the cheque or the demand draft has been drawn.
Bank branch on which DD or Cheque is drawn If the payment is made through cheque or demand draft, it will be drawn on a particular bank. The name and branch of that bank to be provided in this field.
Signature of the depositor This is the final field where the subscriber needs to give a signature. It has to be the same signature that was or is provided along with the account opening form. If the signature varies, the deposit will not take place.
Bank’s or Post Office’s Side: Counterfoil 2
Nothing different. Exactly the same details as mentioned in Counterfoil 1

Well, that is pretty much everything you need to know about PPF Form B. In case you have any further queries, feel free to drop a comment. We will try to clarify your doubts as soon as possible.

Where is PPF Account Form B Found

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