Comments on: Why to open a PPF account in India http://www.jagoinvestor.com/2009/08/why-to-open-ppf-account-even-if-you.html Financial Planning , Insurance , Mutual Funds , Investments Sat, 11 Feb 2012 14:23:57 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Nitin Sontakkehttp://www.jagoinvestor.com/2009/08/why-to-open-ppf-account-even-if-you.html#comment-36454 Nitin Sontakke Mon, 06 Feb 2012 15:04:21 +0000 http://www.jagoinvestor.com/?p=228#comment-36454 Hello, As stated elsewhere, there is a cap of 1L per tax paying person, per year for depositing money in PPF. As such, if there are 3 accounts (1 self, 1 spouse, 1 kid) and only one person is having income, max 1L be put in 3 accounts i.e. say, 80K, 10K and 10K, etc and not 1L per account. Hope that clarifies. Hello,

As stated elsewhere, there is a cap of 1L per tax paying person, per year for depositing money in PPF.

As such, if there are 3 accounts (1 self, 1 spouse, 1 kid) and only one person is having income, max 1L be put in 3 accounts i.e. say, 80K, 10K and 10K, etc and not 1L per account.

Hope that clarifies.

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2009/08/why-to-open-ppf-account-even-if-you.html#comment-36372 Manish Chauhan Mon, 06 Feb 2012 05:25:25 +0000 http://www.jagoinvestor.com/?p=228#comment-36372 Sandeep THat looks a mistake from Rediff .. NRI's can only Continue their PPF which they already opened when they were not NRI and the payments has to be from NRO account, however NRI can not open a fresh PPF account at all .. I see the wordings on RBI website like this http://www.rbi.org.in/scripts/FAQView.aspx?Id=52 Note : NRIs are not permitted to invest in small savings or Public Provident Fund (PPF). Sandeep

THat looks a mistake from Rediff .. NRI’s can only Continue their PPF which they already opened when they were not NRI and the payments has to be from NRO account, however NRI can not open a fresh PPF account at all .. I see the wordings on RBI website like this

http://www.rbi.org.in/scripts/FAQView.aspx?Id=52

Note : NRIs are not permitted to invest in small savings or Public Provident Fund (PPF).

]]> By: Sandeephttp://www.jagoinvestor.com/2009/08/why-to-open-ppf-account-even-if-you.html#comment-36336 Sandeep Sun, 05 Feb 2012 10:51:07 +0000 http://www.jagoinvestor.com/?p=228#comment-36336 As per http://www.rediff.com/getahead/2005/mar/08ppf.htm, "10. Non-resident Indians earning an income in India and wanting to take advantage of the rebate can also open an account. Subscriptions, however, will have to made from their Non-Resident Ordinary (NRO) account on a non-repatriable basis." Regards As per http://www.rediff.com/getahead/2005/mar/08ppf.htm,
“10. Non-resident Indians earning an income in India and wanting to take advantage of the rebate can also open an account. Subscriptions, however, will have to made from their Non-Resident Ordinary (NRO) account on a non-repatriable basis.”

Regards

]]> By: Nitin Sontakkehttp://www.jagoinvestor.com/2009/08/why-to-open-ppf-account-even-if-you.html#comment-36247 Nitin Sontakke Fri, 03 Feb 2012 12:49:06 +0000 http://www.jagoinvestor.com/?p=228#comment-36247 To answer simply, yes. However, if your Section 80C is already crossing 1L, you will not (technically) get any tax benefit. Although, this may not help YOU now, it will help your son in long run. To answer simply, yes.

However, if your Section 80C is already crossing 1L, you will not (technically) get any tax benefit.

Although, this may not help YOU now, it will help your son in long run.

]]> By: Nitin Sontakkehttp://www.jagoinvestor.com/2009/08/why-to-open-ppf-account-even-if-you.html#comment-36245 Nitin Sontakke Fri, 03 Feb 2012 12:43:19 +0000 http://www.jagoinvestor.com/?p=228#comment-36245 Well, that's not quite correct technically. After initial period of first 15 years, upon each subsequent renewal, there is a locking period of 5 years. Well, that’s not quite correct technically.

After initial period of first 15 years, upon each subsequent renewal, there is a locking period of 5 years.

]]> By: Nitin Sontakkehttp://www.jagoinvestor.com/2009/08/why-to-open-ppf-account-even-if-you.html#comment-36242 Nitin Sontakke Fri, 03 Feb 2012 12:37:23 +0000 http://www.jagoinvestor.com/?p=228#comment-36242 Here are the answers to your questions. 1/ Interest is calculated monthly but deposited yearly on 31st March. 2/ As per above, you will get interest on 31-March-2012 (from Oct, if you deposit before 5th of Oct, to March otherwise from Nov to March). 3/ It works exactly the other way round. Deposit the money before 5th April every year. You will get interest for whole year. 4/ After maturity of account for the initial period of 15 years, you can extend it for 5 years as many times as you wish. Hope it clarifies. Here are the answers to your questions.

1/ Interest is calculated monthly but deposited yearly on 31st March.

2/ As per above, you will get interest on 31-March-2012 (from Oct, if you deposit before 5th of Oct, to March otherwise from Nov to March).

3/ It works exactly the other way round. Deposit the money before 5th April every year. You will get interest for whole year.

4/ After maturity of account for the initial period of 15 years, you can extend it for 5 years as many times as you wish.

Hope it clarifies.

]]> By: Nitin Sontakkehttp://www.jagoinvestor.com/2009/08/why-to-open-ppf-account-even-if-you.html#comment-36239 Nitin Sontakke Fri, 03 Feb 2012 11:42:51 +0000 http://www.jagoinvestor.com/?p=228#comment-36239 Hello Hitesh, So long as you extend the account by 5 years (you can do it as many times as you wish), it is the same account that you opened now and you will get the THEN declared percent of interest on WHOLE of the balance. Essentially (even if you are not asking) there are 3 ways it may go after 15 years. 1/ Extend the account by 5 years and keep depositing so far as possible - Highly recommended. 2/ Do not extend the account and do not close it and keep withdrawing only the interest which gets deposited at financial year end. - When option 1 is no longer viable. 3/ Close the account and get the whole amount. - Not recommended and defeats the whole purpose of PPF Hope it clarifies. Hello Hitesh,

So long as you extend the account by 5 years (you can do it as many times as you wish), it is the same account that you opened now and you will get the THEN declared percent of interest on WHOLE of the balance. Essentially (even if you are not asking) there are 3 ways it may go after 15 years.

1/ Extend the account by 5 years and keep depositing so far as possible – Highly recommended.
2/ Do not extend the account and do not close it and keep withdrawing only the interest which gets deposited at financial year end. – When option 1 is no longer viable.
3/ Close the account and get the whole amount. – Not recommended and defeats the whole purpose of PPF

Hope it clarifies.

]]> By: Hiteshhttp://www.jagoinvestor.com/2009/08/why-to-open-ppf-account-even-if-you.html#comment-33717 Hitesh Sat, 14 Jan 2012 08:40:36 +0000 http://www.jagoinvestor.com/?p=228#comment-33717 During the extension , the interest will be calculated on the accumulated amount for 15 yrs or will it be treated as fresh During the extension , the interest will be calculated on the accumulated amount for 15 yrs or will it be treated as fresh

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2009/08/why-to-open-ppf-account-even-if-you.html#comment-33651 Manish Chauhan Fri, 13 Jan 2012 16:12:31 +0000 http://www.jagoinvestor.com/?p=228#comment-33651 Hitesh Its very simple .. you can extend your PPF for every 5 yrs .. so you will have to extend it for 3 times Manish Hitesh

Its very simple .. you can extend your PPF for every 5 yrs .. so you will have to extend it for 3 times

Manish

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