Do you know you can open PPF account for child and get many benefits, know how to apply
The Public Provident Fund (PPF) scheme is run by the central government. Therefore, investing in it is considered safe. The PPF account holders get the benefit of tax exemption.
Under Section 80C of the Income Tax Act, the PPF account holders get the benefit of tax exemption on contributions up to Rs 1.5 lakh in a year. Apart from this, income from maturity and interest is also tax free.
The PPF account holders need not be only adults. The PPF account also can be opened even for the minors or those who are below 18 years of age.
According to reports, a PPF account can be opened for a child of any age. Parents will invest in the account till the child grows up. After the child attains the age of 18 years, he can also deposit in the account himself.
Eligibility of PPF Account For Minors
- Though the PPF accounts can be opened for minors, they should meet the following conditions.
- The Public Provident Fund account holders should be Indian residents and avail tax-free returns.
- Only one of the guardians or parents (either natural or legal guardian) of the minor can open the account for the minors. Grandparents of the minor child cannot operate PPF account unless they are legal guardians.
- A nominee must be registered while opening the PPF account
- The individual can contribute a minimum of Rs 500 and a maximum of Rs 1.5 lakh to the PPF account of the minor, in a financial year.
How and where to open PPF Account for minor children?
- The Public Provident Fund account for minor children can be opened at any of the post offices or a designated bank brands authorized to open the PPF accounts.
Documents required open PPF Account for minor children
- Guardian’s KYC
- Child’s photo
- Proof of age of the child (Aadhar card, birth certificate)
Minimum and maximum investment at PPF Account for minor children
- To open a PPF account, starting with a minimum of five hundred rupees, you can deposit up to a maximum of one and a half lakh rupees.
(With inputs from paisabazaar.com)