How to open a PPF account for your minor child

There is no age limit for opening a PPF account. In the case of a minor, the account is operated by a guardian until the account holder turns 18.

1. Who can open?

A minor’s legal guardian or natural guardian (mother or father) who is a resident individual can open a PPF account on behalf of the minor. Only one of the guardians can open the account. Both mother and father can’t open the account on behalf of the same minor.

2. Where can you open the account?

PPF account can be opened with a post office or a designated bank branch authorised to open PPF accounts.

3. Form

The guardian should provide his details along with the minor’s in the PPF account opening form. The form should have the following documents:

• Account opening KYC documents of the guardian with photograph
• Age proof of the minor child (Aadhaar card or birth certificate)
• Cheque for initial contribution to the PPF account of Rs 500 and above.

4. Minimum and maximum investment The minimum

Contribution in a financial year is Rs 500 whereas the maximum contribution is Rs 1.5 lakh.

5. Tax aspects

Interest accrued along with the maturity amount are both tax free in the hands of the account holder. Contributions made to PPF account enjoy deduction of up to Rs 1.5 lakh each financial year under Section 80C. An individual with a PPF account of his own and as a guardian of his child can avail a maximum deduction of Rs 1.5 lakh taking both the accounts together. Each PPF account does not get a separate deduction limit of Rs 1.5 lakh.