<p>PPFs, or public provident funds, are well-liked investment choices in India because to their low risk of loss, competitive interest rates, and reduced taxation. Any resident of India may start investing in PPF with as little as Rs 500 annually. A maximum of Rs 1.5 lakh may be placed into a PPF account each year. If Rs 500 is not deposited, the PPF account becomes inactive after a financial year. Since terminating the account would also impede the availability of additional PPF benefits, it is imperative that the yearly mandated amount be deposited into the PPF account. If the PPF account has been canceled for whatever reason, there’s nothing to worry about. Reactivating a closed PPF account is simple.</p>
<p><img decoding=”async” class=”alignnone wp-image-347411″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-how-to-make-a-ppf-account-activate-untitled-design-2024-01-10t220544.457-2024-01-8.jpg” alt=”theindiaprint.com how to make a ppf account activate untitled design 2024 01 10t220544.457 2024 01 8″ width=”1073″ height=”715″ title=”How To Make A PPF Account Activate 6″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-how-to-make-a-ppf-account-activate-untitled-design-2024-01-10t220544.457-2024-01-8.jpg 510w, https://www.theindiaprint.com/wp-content/uploads/2024/01/theindiaprint.com-how-to-make-a-ppf-account-activate-untitled-design-2024-01-10t220544.457-2024-01-8-150×100.jpg 150w” sizes=”(max-width: 1073px) 100vw, 1073px” /></p>
<p>The account holder must visit the bank or post office where the PPF account was created in order to reopen it. There will be a form to complete out in order to reactivate the account. In addition, you will be required to pay a penalty of Rs 50 each year in addition to the arrears for the years that you failed to deposit the money. Let’s say that your PPF account has been inactive for four years. For a period of four years, you would be required to pay arrears totaling Rs 2000. You will also be required to pay a penalty of Rs 200, which is payable every year at a rate of Rs 50.</p>
<p>In 2016, the government approved the closure of PPF accounts before they matured in certain cases. These situations may include covering the cost of a child’s schooling or a major illness. Only after five years of PPF account investing is this possible. Loans may also be made using PPF accounts. None of these benefits are available to an inactive PPF account. Closing a PPF account is thus not advised.</p>
<p>Under section 80C, investments made in PPF are free from taxes. Moreover, neither interest income nor the amount received at maturity are subject to taxation.</p>
