How to Claim an Amount Using Form G On Death of PPF Account Holder

How to Claim an Amount Using Form G On Death of PPF Account Holder

How to Claim an Amount Using Form G On Death of PPF Account Holder: In case the subscriber of a Public Provident Fund or PPF dies. The money left in the account is automatically passed on to the nominee or nominees or the legal heirs after filing some paperwork. The paperwork and documentation will depend on whether the subscriber had appointed a nominee for a claim in the PPF account or not.

How to Claim an Amount Using Form G On Death of PPF Account Holder Overview

  • Form: The nominees or the legal heirs can register to submit a duly filled form called Form G to the bank or the post office where the deceased subscriber had held their account. Form G is crucial in this case and the Ministry of Finance.
  • Nomination Registered: If the deceased PPF subscriber had appointed a valid nomination, then the nominee only can claim the proceeds from the account. They need to fill the Form G along with the proof of death of the subscriber, i.e., their death certificate.
  • No Nomination Registered: If there are no nominations in force, the legal heirs of the deceased subscriber can claim to their account. They have to provide the death certificate, a succession certificate, or a letter of administration along with an attested copy of the probate will include that a competent court has issued.

How to Claim the PPF Amount If the Amount is up to Rs 1 Lakh

  • If the sum standing to the credit in the PPF account of a deceased subscriber or member had a claim up to Rs 1 lakh, then the claim can be processed after the heir submits the following documents.
  • A letter of indemnity
  • A letter of disclaimer on affidavit
  • An affidavit
  • A death certificate of the subscriber on stamped paper

How to Claim PPF Amount if the Nomination Details Do Not Exist And The Amount Is Less Than One Lakh?

If there are no existing nomination details or any legal evidence that people can produce to claim the amount, they can fill the annexure 1, 2 or 3 according to the PPF rule 12 (6) in Form G.

How to Go About the Process of Claiming the PPF Amount

  • The legal heir or the nominee has to provide the bank or the post office with the receipt of the application and other documents.
  • If the authorities find that all is in order, then the amount standing in the PPF account will be credited to the nominee or nominees from the PPF account of the deceased.
  • The nominee or the heirs have to fill up Form G, and they can download it online, or they can visit the bank or post office for the same.

The Form asks for information about the claim, such as the account number, the nominee details, the place, address, etc.

The Form G contains three annexures: Annexure 1, Annexure 2 and Annexure 3. The people who claim the amount have to produce the passbook of the original subscriber and the death certificate.

  • Annexure 1 contains Form G or the letter of indemnity that should be on stamped paper.
  • Annexure 2 includes the affidavit on stamped paper.
  • Lastly, Annexure 3 contains the letter of disclaimer on affidavit on stamped paper.

Therefore, all the annexures in Form G should be produced in stamp paper in front of a valid court. They also require the passbook of the deceased subscriber.

In case one of the nominees die, then the surviving nominee or nominees will have to provide the proof of death of the deceased nominee as well. The balance in the PPF account will continue to earn interest till the end of the month preceding the payments stopped depositing.

What Happens If A PPF Account Holder Or Subscriber Dies Before Fifteen Years Of The Investment Period Is Not Completed?

  • If the subscriber of a PPF account dies before completing fifteen years of investment, the successor can get part of the balance on demand.
  • However, if the nominee does not withdraw the balance, it will continue to earn tax-free interest. There are no partial PF withdrawals in this case.
  • Besides, it is risky to continue the account because they cannot appoint another nominee unless they have dissolved the account.
  • If there are multiple nominees, then they are the joint holders of the account. All of them have to apply for closure together.
  • Each of them will have to identify themselves to the concerning officer.
  • After they have completed all the formalities, the officer will issue a single cheque in favor of all of them.
  • They cannot encash it unless all the nominees have a joint account.
  • If there are no nominations assigned, then the balance will go to the legal heirs on the production of their succession certificate.
  • Hence, the legal heirs or the nominees should not continue it for the duration to be over because it is very risky. They should close the account after withdrawing whatever is available.
  • If they choose to leave the account open, then the excess amount that a person deposited after the original subscriber’s decease will not attract any interest. Rather, it will come back to them as it was.
  • The PPF account cannot be extended or transferred, but if the balance remains, it continues to have tax-free interest.
  • If there are no nomination details and they have a legal claim to the amount, then they need to fill the Form G if they are the legal heir.
  • They require the death certificate and the succession certificate.
  • If they don’t have the succession certificate, then they have to get an attested copy of the deceased subscriber, and it should be issued by a high court. They can also produce a letter of administration instead.
  • Along with these, they need the passbook of the subscriber.

How Long Will It Take To Process The Application?

In India, it is a long and tedious process. After one submits all the necessary documents pertaining to the claim of the PPF account, then the processing will take over a month at best. The P.F. settlement process may take somewhere from thirty to ninety days.

What Is The Distinction Between A Nominee And A Legal Heir?

According to our law, a nominee is not the owner of one’s investments. They are only the trustee of our assets in case of one’s death.

  • According to the succession law, they can distribute the money to the legal heirs according to one’s will.
  • The succession laws in India are varied according to the religion one’s faith. Hence, if they are Muslim, they will follow the Muslim rule, and if they are Hindu, they will follow the Hindu succession law, and so on.

How to Add or Change Nominee in the PPF Account?

If someone wants to change the registration or cancel the variation of nomination in the PPF account, they won’t have to bear any extra charges. People have to fill the form E to add the nominations in the PPF account. If they want to change the nomination details, then they can fill the Form F. They can download either Form from the bank or the post office’s site, and they can file it and update it after submission.

  • Fill up Form E or Form F.
  • Two witnesses have to sign it. The witnesses can be anyone, with or without your family relations.
  • Please submit it to the bank or the Post Office.
  • Make the people record the details of the new nominations in the passbook. You need to have both the nomination registration number and the nominee’s details in the passbook correctly.

You can wish to have more than one nominee for the account. If the nominees want to receive the payment, they will need to open a joint account to get it. They need a joint discharge application of withdrawal form or Form G at the time.

If the subscriber does not mention the nomination share for each of the nominees, then all of the nominees will get an equal share of the total amount after the subscriber’s death. Again, if a nominee forfeits their percentage of the amount after the owner’s demise, then the remaining nominee will get their payment in their account if they want. In such a case, the authorities should have the passbook. They will issue a notice to the remaining nominees with the information in the passbook. It is their responsibility to tell them about the payment they made to one or more nominees. They will call them to take their share and ask them about the availability of the passbook.

If undelivered, the passbook entered in the register will get disposed of like the passbooks in the deposit. It will get forwarded from the sub-office to the head office for safekeeping. In the case of P.O. savings account also, they follow a similar procedure.

Can We Claim the PPF Amount if the Nominee is a Minor?

  • If a minor is a nominee and the subscriber dies, then the person under eighteen becomes the subscriber.
  • The amount in the said account will not be payable on the death of the subscriber or parent because the PPF Act, section eight mentions that the sum is payable only after the subscriber’s demise.
  • The account hence remains operative, and no one needs to open another account.
  • If there is a surviving natural guardian or if the court appoints a competent guardian, then they can control the account after producing the necessary guardianship certificate.
  • If you have a PPF account, then you can make a maximum deduction of 1.5 Lakhs under rule 80C.

How to Download Form G?

If you want to download Form G because of the death of the subscriber who was related to you or you were the nominee, then you can go to the official site of the State Bank of India and download Form G in PDF format.

  • You can also search for it online, and you will get redirected to the State Bank of India page.
  • If the deceased subscriber had their PPF account in the post office, then you can go to the Post Office’s official site and download the form G in PDF format.
  • You will have to fill it and manually bring it to the bank or the post office for further processing. There is no process for filing it online.
  • Since the excess amount after the death of the PPF account holder does not add to any interest, it is better to withdraw it.
  • On the other hand, people related to the subscriber, i.e. the nominee or the legal heir, cannot extend the account.
  • Even if you want to convert it into a fixed deposit under the same statement, you cannot do it. Kindly talk to the bank manager or the authorities in the post office about the immediate removal of the money and dissolve the account.
  • We recommend you avoid the risk and hassle, but it is up to you.
  • Even if you have all the required documents, it takes months to process the amount. If there are any disputes, it might stretch longer.

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