Q. Is the benefit of Tax Deduction under section 88 of the Income Tax Act available to a spouse when he / she contributes to the Public Provident Fund account maintained by the other?
The benefit under Section 88 will be admissible in both cases, a husband contributing to the wife's, and wife contributing to the husband's account. The only condition that should be satisfied is, it should come out of the contributor's income chargeable to tax.

Q. If one wishes to continue a PPF account after the completion of a 15-year tenure, is it better to go for extensions in blocks of 5 years, or should one start a fresh account after closing the previous one?
If you close the account and open a fresh PPF account, you have access to 100 per cent of your account balance; extending the same account for a block of 5 years gives you access to 60 per cent of your account balance at that time, which means a large amount of money still gets blocked for 5 years. Starting afresh always gives you the opportunity to decide what amount you want to invest, with the entire maturity amount at your disposal. This becomes all the more important with the recent interest rate cut.

Q. For how many years can a PPF account be extended after the initial 15 years of operating it?
After the PPF account has been in operation for 15 years, it can be extended for a duration of 5 years at a time. This extension can be taken any number of times and there is no limit on how many times a person takes this extension.

Q.What is the procedure for transfer of a PPF account from one branch of a bank to another branch, or from one post office to another post office?
All you need to do is to fill up a PPF account transfer application which is available from the post-master and submit it to him.

Q.What is the procedure for transfer of a PPF account from a bank to a post office?
The State Bank of India or one of its subsidiaries will issue an "Account Payee Cheque" or a Demand Draft when the transfer is to an outside station, in favour of the transferee Head post office, alongwith a certified copy of the ledger and all other related original records such as an application for opening the account, application signature and nomination. The cheque/draft will be drawn by designation and will indicate that it relates to PPF Account No………..
On receipt of the PPF account on transfer with the cheque or draft from the bank, the account will be opened at the transferee Head post office like any other new account opened. The transaction will not be included in the credit transfer journal but will be entered in the list of transactions like other new accounts opened by cash.

Q.Can the PPF account be attached?
The PPF Act only gives the account-holder immunity from attachment under a decree/order of a court of law. But the account can be attached by the income tax and estate duty authorities.

Q. Opening of account in the name of the minors?
Under the Public Provident Fund scheme, an individual may open one Public Provident Fund account on behalf of each minor child of who he is the guardian. Incidentally, it may be reiterated that only one account can be opened in one name. Thus, if a guardian opens an account on behalf of a minor child, the other guardian cannot open an account on behalf of the same minor child

Q.What is the rate of interest in a PPF account?
The following table shows the interest rates applicable on PPF Account, starting from 1968-69 to the presently applicable rate of interest.

Year	Rate of Interest P.A.
1968-69	4.8%
1969-70	4.8%
1970-71	5%
1971-72	5%
1972-73	5%
1973-74	5.3.%
1974-75	5.8%(From 1.4.74 to 31.7.74)
1974-75	7% (From 1.8.74 to 31.3.75)
1975-76	7%
1976-77	7%
1977-78	7.5%
1978-79	7.5%
1979-80	7.5%
1980-81	8%(1998-99)
1981-82	8.5% (1999-2000)
1982-83	8.5%(2000-2001)
1983-84	9%
1984-85	9.5%
1985-86	10%
1986-87	12%
1987-88	12%
1988-89	12%
1989-90	12%
1990-91	12%
1991-92	12%
1992-93	12%
1993-94	12%
1994-95	12%
1995-96	12%
1996-97	12%
1997-98	12%
1998-99	12%
1999-2000	12%
2000-2001	11%(w.e.f.15.1.2000)
Latest	9.5 % (w.e.f.01.03.2001)

Q. In the event of death of a guardian, in relation to a minor, should the PPF account standing in the name of the minor be closed and a new account opened?
In the case of an account opened on behalf of a minor, the minor is treated as subscriber. The amount in the account of a minor does not become payable on the death of the guardian, because, under Section 8 of the PPF Act, the amount becomes payable only on death of the subscriber. In case of death of the guardian, the account of the minor remains operative and a new account need not be opened. The surviving natural guardian or a guardian appointed by a competent court may continue the account of the minor after producing the necessary guardianship certificate.

Q. In the event of death of the minor subscriber, is the balance in the account payable to the guardian?
In the event of death of the minor subscriber, the guardian does not ipso facto become entitled to payment of the balance. The balance, in such cases, is payable to the legal heirs of the minor, in accordance with Section 8 of the Public Provident Fund Act and para 12(6)(ii) of the Public Provident Fund scheme.

Q. Is any fee for the cancellation or variation of nomination to be charged from the subscriber, as is charged in savings accounts?
Since there is no provision for charging any such fee in Rule 12 of the Scheme, no fee for cancellation or variation of the nomination is to be charged.

Q. Is a person having a PPF account in the State Bank allowed to open another account in the post office and vice-versa?
No. An individual can open only one account in his name either in the post office or in the State Bank, and he has to declare this in the appliction form for opening the account.

Q.Can a PPF account be allowed to continue if the total deposit in a financial year falls short of Rs.100/- or should it be closed without interest?
Where a subscriber does not subscribe Rs.100/- in the initial year, subscriptions paid by him will be refunded to him without interest as the account in question cannot be treated as having been opened validity. But accounts wherein the subscriber having subscribed Rs.100/- in the initial year failed to make minimum deposits in the following year may continue after getting the default condoned by the Accounts Office on payment of the prescribed default fee, along with arrears of subscriptions.

Q. Is the facility of loan and withdrawal admissible to accounts in which no subscriptions are regularly made every year?
A subscriber who has not maintained his subscriptions in the account as per Rule 3 of the Scheme and has defaulted his subscriptions in any year, will not be eligible either for taking loan or partial withdrawal from the account unless the account is regularised by payment of arrears of subscriptions alongwith the default fee.