In this post you will learn more about Opening PPF Account for Minor and its rules and regulations to be followed. With the recent announcement of PPF Investment Hike in Budget 2014 we are going one step ahead to enable you to save for the future of your kid(s) for their education / marriage / higher studies in overseas by teaching you How to Open PPF Account for Minor and what are the benefits associated with it.
PPF Account Savings is the best asset for your kids future
Opening PPF Account for Minor
Now we will take you through step by step workflow to follow when opening a ppf account for minor
How to Open PPF Account for Minor
Not only opening an PPF Account for your kid is important, but where to open ppf account in india for your kid matters a lot. I have talked to users in this blog over phone, email twitter and whatsapp PPF Account Group and the common question users have asked me is Can I Open PPF Account for Minor / Opening PPF Account for Minor in Post Office, Opening PPF Account for Minor is SBI or Opening PPF Account for Minor is ICICI Bank which is good.
My answer to this is Opening PPF Account for Minor in SBI is the best bet. Okay, now you may ask me why and what for ? Well there are several reasons associated with it. But when you look at long run of the ppf account, its advised to open in SBI. Here are some reasons.
Assuming you open a PPF Account for child at the age of 10 and we clearly know that the lock in period of PPF Account in 15 years. So at the age of 25 the account matures. During the tenure of the ppf account, your kid undergoes his education followed by higher education. At the time he/she joins for job at a different city, then the issue of transfer comes into picture. Although I don’t force any user in this blog to specifically open a ppf account in a particular bank but generally insist users to ensure a smooth transfer of ppf account from one city to another or from one state to another. For this State Bank of India is the best bet for transferring PPF Account. Although there are 27 public sector banks that do have services across the country, State Bank of India has a total of 14,816 branches across the country with highest and this clearly gives ample opportunity to choose a branch of your choice when your kid gets a new job or transfers to a different city after marriage as the extension of ppf account can be done in cap of 5 years each further.
Note: PPF Account for Minor in Post Office can also be opened by parents that is convenient to them.
PPF Account for Minor Tax Benefit
Father or Mother willing to open an account for the minor can avail tax benefit. Let’s see how ? A user is entitled to save upto 1,50,000 INR under the new budget scheme 2014 under sec 80c. The same can also be invested in PPF with a max investment of 1,50,000 INR. Now a parent can distribute the savings by investing 1,00,000 INR in his ppf and 50,000 INR in the Minor PPF Account. The user can show the savings made in the minor ppf account for his/her annual tax savings. There by PPF Account for Minor Tax Benefit being valid. So try saving a small portion of your savings in the PPF Minor Account.
PPF Account Minor Limit for Investment
PPF Investment for Minor or what is called as PPF Investment Limit for Minor gives a user max 1,50,000 INR. So this is indeed a great benefit for tax payers or business men who make good profits can now deposit in PPF Account for Minor. Although it cannot be clubbed with his or her savings as the max cap limit under sec80c is 1,50,000 and if the user has reached that limit, he cannot add the investment made in the minor account. But can always save for the future of the kid. Therefore PPF Minor Contribution can be from 500 INR to 1,50,000 INR.
Documents Required for Opening PPF Account for Minor
When opening a PPF Minor Account, along with the documents proof of the parent / guardian, any one of the following documents of the Minor is also required
- Birth Certificate of the Minor
- School Leaving Certificate Stamped by the School Principal