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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