TIPS FOR VETERANS

Indian Military Veterans

YOUR PPF ACCOUNTS - NOMINATIONS

IT IS OUR ENDEAVOUR TO PERIODICALLY PLACE HERE IMPORTANT SUBJECTS  FOR THE VETERANS NOT ONLY FOR THEIR INFORMATION BUT ALSO FOR THEIR IMMEDIATE ACTIONS.

      WE HAD EARLIER GIVEN TIPS ASSETS REGISTER AND NOW A TIP ON  PPF ACCTS PUBLISHED,  HAVING NOMINATIONS IN PPF ACCOUNTS  IS MORE THAN SPECIAL. DO UNDERSTAND IN CASE YOU HAVE NOMINATED YOUR RELATIONS WITH PERCENTAGES FOR EACH.
     DO CHECK WITH YOUR BANK AND POST OFFICE TODAY WHETHER THEY HAVE RECORD OF NOMINATION ON PPF OR NOT.

Nomination in PPF 

      On the death of a PPF subscriber the balance in the PPF account is paid on demand to his nominee or successor. However, the balance, if not withdrawn, continues to earn tax-free interest. No partial withdrawals are permitted. It is risky for the nominee to continue the account because the nominee cannot appoint a nominee. Hence the nominee must understand this and we should make it a point to brief him.

       In the case of joint nominees, PPF rules allow allocating a percentage of benefits against each nominee. But the form does not provide a specific place to indicate the same and therefore, many fail to indicate the percentages.

     In that case, the nominees are treated as joint holders and have to apply together for the closure. Each nominee is required to identify himself to the satisfaction of the concerned officer. After completing all the formalities, a single cheque is issued in favour of all of them together. This cannot be encashed, unless all the nominees have a joint account. If no nomination is in force, the balance will be paid to the legal heirs on production of the succession certificate or probate. In India, it takes an enormous time, money, and energy to obtain this. 

    To mitigate hardships, a balance up to Rs 1 lakh only may be paid to legal heirs on applying in Form-G along with a letter of indemnity, an affidavit, a letter of disclaimer on affidavit and a death certificate pending succession proceeding sin the court which may take years even if undisputed/unchallenged.

THE FORMS REQUIRED FOR NOMINATION ARE AVAILABLE IN VETERANS LIBRARY IN THIS SITE  WHICH MAY BE DOWNLOADED BY CLICKING HERE .  
   IF EVER REQUIRED THE APPLICATION FORM (FORM-'G') FOR CLAIM BY THE NOMINEE OR LEGAL HEIRS BE DOWLOADED FROM HERE  (CLICK TO ACCESS).