Public Provident Fund: How nominees, legal heirs can claim a PPF account on death of the subscriber

Public Provident Fund is a popular long-term savings scheme offering tax benefits and attractive interest rates. Here’s how nominees or legal heirs can claim a PPF account on the death of the subscriber.

Who gets the PPF proceeds?
Typically, the nominee receives the proceeds in the event of the account holder’s death. If there is no nomination, legal heirs of the deceased, as per the succession laws, are entitled to claim the PPF amount.

Documents needed

• The first step in the claim process involves collecting the following documents.
• Death certificate: A certified copy of the death certificate of the PPF account holder.
• Claim form: Form G is the application form for claiming the PPF balance after the subscriber¡¦s death.
• Identity proof: ID proofs of the nominee(s) or legal heir(s).
• Proof of relationship: If the claim is made by legal heirs, proof of relationship with the deceased (succession certificate, will, legal heir certificate, etc).

Submission of claim form
The nominee or legal heir must fill Form G, providing deceased’s name, PPF account number and claimant’s details. The form includes a declaration and indemnity bond, especially for multiple claimants or substantial amounts. Form G and other documents are submitted to bank or post office where the PPF account is held.

Processing the claim
Once verified, the bank or post office processes the claim, closing the PPF account. It calculates the accumulated amount, with interest till the date of the subscriber’s death, and transfers it to the heir’s account.

Points to note

• Interest is paid up to the month preceding the month of closure.
• The PPF amount is tax-free in the hands of the nominee or heir.
• If there are multiple nominees, the PPF balance is distributed as per the percentage specified in the nomination.

Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.