Public Provident Fund: If your Public Provident Fund (PPF) account has been closed, then it should be started as soon as possible. You can suffer many losses due to inactive PPF account. First of all let us know why PPF account becomes inactive. Actually, at least 500 rupees have to be deposited in this account every year. This work has to be done for 15 years. Many times people are not able to put even the minimum amount in the account due to various reasons, due to which the account gets closed.
You can restart PPF account like this
- The process of restarting PPF account is not very difficult.
- To re-activate PPF account, you have to visit the bank or post office where it is opened.
- Here you have to fill a form to get the account activated again.
- After filling the form, you have to pay the arrears. This means that for every year in which you have not paid, you will have to make a minimum payment of Rs 500.
- Along with this payment, you will also have to pay a penalty of Rs 50 per year.
These are the disadvantages of closing the account
- In 2016, the government changed the rules and allowed closure of PPF account before maturity in certain situations. This can be done only after the account has been in operation for five years. If your account is inactive, you will not get this facility unless it is activated again.
- After the third financial year, the loan can be taken against the balance in the PPF account till the end of the sixth financial year. This benefit is also not available in an inactive PPF account.
- Keep in mind that if the account holder wants to open a PPF account other than the closed PPF account, then it will not be allowed to him because there is no such rule. No one person can have two PPF accounts.
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