Public Provident Fund – PPF: What will happen if the holder taking PPF dies in the time period of 15 years? Have you ever thought about this?
Public Provident Fund (PPF): PPF is a good investment option for salaried, self-employed professionals and employees not covered by EPFO. Apart from this, those who do not have a job, who are doing business can also invest in PPF. Let us know that the PPF scheme can be continued for more than 15 years, so that a huge fund can be created at the time of maturity. But what if the PPF holder dies within the time period of 15 years? Have you ever thought about this?
What will happen to PPF on death?
Suppose someone invests in PPF for 15 years. He puts money into his investment once every month or year. If the PPF holder dies anytime in the meanwhile i.e. after 8 or 10 years, the nominee gets the full money. The rule of maturity of 15 years does not apply to him. PPF account is closed after giving money to the nominee.
How does the settlement happen to the nominee?
As per the rules, the settlement of death claim is done on the basis of several reasons. If the claim amount is Rs 5 lakh or less, nomination settlement can be done on the basis of death certificate, relationship proof or legal proof. It depends on the authority. If the money is more than 5 lakh rupees then it becomes necessary to apply legal proof.
PPF account can be closed after 15 years
PPF is one option that can be used in times of cash need or financial crisis. To transfer your PPF money to a savings account, you will need to submit a form to the bank or post office with details of the PPF and savings account. Apart from this, original passbook and canceled check will have to be submitted along with the form. After that PPF money will be transferred to your account after maturity.
These benefits are available on PPF
The government decides the rate of interest on PPF. Up to Rs 1.5 lakh can be invested in this scheme. Investors investing in PPF get tax benefits in three ways. Apart from the benefit of tax deduction on the money invested in PPF, there is no tax on the interest and maturity amount.
PPF is tax free
Public Provident Fund (PPF) is considered a better investment option for the long term. Investment in PPF is completely safe and it also gives full benefit of tax exemption. This is a better option for employed people. Investment in PPF, interest earned on it and amount received on completion of maturity period, all three are completely tax free. That is, there is no tax anywhere and there is no risk of any kind in it.