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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