The Public Provident Fund (PPF) was established in 1968 as an investment option giving acceptable returns and some income tax benefits under Section 80C of the Income Tax Act by the National Saves Organization with the goal of encouraging small savings and investments among the people. Anyone may create a PPF account and invest funds in it. PPF investments are regarded as one of the best ways for many investors to save money while also saving taxes. Furthermore, not only adults but even kids can create a PPF account. The minor, however, cannot open the account. In such circumstances, the account must be managed by the guardian until the child reaches the age of 18.
The plan was created with the goal of mobilizing small savings by providing an investment with fair returns as well as income tax benefits. PPF investments are deemed safe since they are insured by the federal government. These authorities, however, have the authority to attach the relevant accounts in order to recoup their tax debts.
There is no minimum age to create a Public Provident Fund account. Adults and kids as well can open an account. However, in the event of children under the age of 18, the account shall be handled on his or her behalf by a guardian until the minor reaches the age of 18. There are no minimum or maximum age restrictions for opening a PPF account. Infants can have their own accounts, but they must be controlled by an adult, sometimes known as a guardian until the kid reaches the age of 18, at which point the youngster can run the account.
To be eligible for a PPF account for a minor, the following requirements must be met:
The underage child’s parents/guardians must produce the following documents:
Q1. Is there a particular age to start the PPF account?
PPF accounts are open at any time. Given that there is no age restriction for opening a PPF account, all that counts is that payments be made on a regular basis in order to generate good returns in the future. However, it is recommended that interested persons create accounts sooner rather than later because opening an account of this type early in a person’s life offers up the possibility of a more secure future.
In the case of children, parents are advised to open a PPF account as soon as the kid is born. Adults who have completed their schooling but do not have a PPF account should open one as soon as they start their first job. PPF accounts can also be created after marriage if you want to have access to a long-term investment alternative. That being stated, there is no certain period that can be determined to be appropriate in terms of PPFs. Individuals can establish an account whenever it is convenient for them.
Q2. What is the minimum amount to open a PF account for a child?
A minor’s PPF account can be created with as little as Rs. 100. However, regardless of the number of accounts, the maximum amount that may be invested in a family’s PPF accounts in a fiscal year is Rs. 1.5 lakh.
Q3. What to do when the minor PF account holder turns 18?
When the minor reaches the age of 18, the parent/guardian of the minor account holder must file an application for a change of status. The account holder should manage all subsequent actions. He should then submit a new application with his signature and any papers that must be attested with the application form.
Q4. Can money be withdrawn from the PPF account for minors?
A depositor can make partial withdrawals from a minor’s PPF account, but only after the seventh year after creating the account. Furthermore, the guardian must sign a declaration declaring that the money withdrawn is solely for the minor’s use.
Q5. Can the child’s PPF account be closed?
Yes, a parent or guardian can close a minor’s PPF account. However, the minor’s PPF account can be prematurely closed only if the funds are needed for the account holder’s further education.