PPF Rule Which You Might Not Know

PPF or public provident fund account is amongst the best-suited for all investor categories simply because of the tax advantage that offers in the existing tax regime under Section 80C plus its EEE category. Also, the avenue is far safe due to sovereign backing as well as offers substantial return to its subscribers. While rates on the scheme have not changed in due course, it is highly likely given the low interest rates in the economy and the recent cut on EPF, you may see PPF rates going down by a tad bit. Nonetheless, they will still be ruling as a highly safe avenue given the current turmoil in global equity and commodity markets.

PPF Rule Which You Might Not Know

Now here is one rule which we will talk about that needs your attention despite all other favourable words on it:

It may be known to you that PPF account balance cannot be attached in case the subscriber faces some lawsuit against any of the debt or liabilities incurred. This implies his or her balance in the PPF account shall remain intact despite the court order. "Amount standing to the credit of any account holder shall not be liable to attachment under any order or decree of any the court in respect of any debt or liability incurred by the account holder."

But the same is not true in case the PPF account holder faces income tax notice for any of the debt or liabilities incurred. So, a clarification has been rendered and as per it the law which protects the PPF account against any attachment applies only when there is some decree or order by the court of Law and not to Income tax notice.

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