PPF Rule: What if the PPF account holder dies before maturity? Know how can claim!

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The central government is coming up with different schemes for every department of the country. One of the very popular schemes is called Public Provident Fund. By investing in it, you can get the benefit of a PF account even without a job.

A total of 15 years can be invested in this scheme. By investing in it, you get the benefit of tax savings along with a strong interest rate.

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Any account holder can invest between Rs 500 and Rs 1.5 lakh in every financial year. You can claim the amount invested under section 80C of Income Tax.

The government is paying interest at the rate of 7.10 percent on a compounding basis on the amount deposited in the PPF account. You can also take a loan against the amount deposited in the account after 3 years.

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If the PPF account holder dies before maturity, the nominee can claim and withdraw the amount deposited in the account. There is no need to wait for 15 years in case of a death claim.

If the claim amount is less than Rs 5 lakh, then the nominee only needs to fill out the death claim form and submit the death certificate. On the other hand, some legal proof like a death certificate, inheritance certificate from the court, etc. may also be required for the amount above Rs 5 lakh.