What happens if a PPF Account holder or subscriber dies? This article explains what happens On Death of PPF account holder, How to Claim using Form G. Which Form to fill? It also explains difference between Nominee and Legal heir. How to Nominate in PPF account.
Overview of On Death of PPF account holder
On the death of a subscriber, the balance in the PPF account is paid on demand to his nominee or successor.Any loans or interests on loans to be repaid by the subscriber will be deducted before the credit is transferred to appropriate person(s).
If not withdrawn on death of PPF account holder
- Excess amount deposited in a PPF account after death of the subscriber will not attract any interest and will be returned as it is .
- PPF account can neither be extended, nor be transferred to any other person,No partial withdrawals are permitted.
- However, the balance, if not withdrawn, continues to earn tax-free interest.
- It is risky for the nominee to continue the account because the nominee cannot appoint a nominee.
There are following scenarios where a claim arises on Death of PPF account holder
- When a nomination exists and nominee(s) is alive.
- When a nomination exists and if any nominee(s) is dead, the surviving nominee or nominees shall, in addition to the proof of death of the subscriber, also furnish proof of the death of the decreased nominee.
- When nomination does not exist and claim is backed by legal evidence
- When nomination does not exist and the credit in the account is less than Rs.1 lakh
In the case of joint nominees, 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. 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.
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 may be paid to legal heirs on applying in Form-G along with i) a letter of indemnity, ii) an affidavit, iii) a letter of disclaimer on affidavit and iv) a death certificate.
To claim the PPF amount, on Death of PPF account holder
- Form G has to be filled up, an excerpt of image is shown below. The form can be downloaded online from bank or post office websites. It is a simple form that asks for information pertaining to the claim like account number, nominee details, place etc. There are 3 annexures to Form G namely Annexure I, Annexure II and Annexure III.
- Along with Passbook of the subscriber and
- Death certificate of subscriber
- The surviving nominee or nominees shall, in addition to the proof of death of the subscriber, also furnish proof of the death of the decreased nominee.
- If there is no nominee, Documents like Succession Certificate, Letter of Administration or attested copy of the will.
- If amount in PPF account is less than 1 lakh, Annexure I to Form G (Letter of Indemnity) on stamped paper, Annexure II to Form G (Affidavit) on stamped paper, Annexure III to Form G (Letter of Disclaimer on Affidavit) on stamped paper
Once submitted, the processing of the application may take over a month, after which the claims may get settled. The PF settlement process may take anywhere between 30 to 90 days.
Reason of rejection of EPF Withdrawal : FATHER”S NAME OF MEMBER DIFFERS WITH CLAIM FORM. We assume that once we have provided the correct data, things would be fine and we don’t bother to check the details. For example our employer deducts the Provident Fund money and we check the payslip or UAN passbook. But in many cases when we try to transfer the EPF account or withdraw from the EPF account we come to know that either name is not correct, father name is not correct or missing or date of joining is not correct. The process to correct EPF details are to submit the application through your employer. This article explains how you can rectify the EPF details , like how to Change or Correct EPF Details like Name,Father Name,Date of Birth,Date of Joining.
When we join an organisation which offers EPF we have to fill Form 11. Form 11 is an important declaration form which enables the provident fund department to maintain records of employees, helping them during inspections and cross checking of facts. It also provides invaluable information about an employee to an employer. Our article EPF Form 11 on Joining a New Job explains it in detail. Personal Information that one enters in Form 11, is as follows
- Date of Birth of employee
- Father’s/Husband’s name
- Mobile number
- Email ID
- Educational credentials
- Marital status
- Date of joining
The details that you enter, can be verified in your UAN passbook as shown in the image below or EPF passbook from the online portal of EPF services using your document number. This will help you to get over all details such as Date of Birth, Date of Joining and Name of employee name and EPFO office(SRO stands for Sub regional office) . This basic information will help you to check your account details.You can check your name, your Father/Husband Name, Date of Birth, Date of Joining.
Potential used car buyers need not worry about making cash arrangements as a pre-owned vehicle or Used car loan provides the required funds. Loan seekers also have the option of customising their EMI amount, thus enabling them to regulate their cash flows.
During the months when their cash holdings are low, they pay less towards their EMI amounts, whereas they may increase their EMIs if there is a surge in their incomes. With such loan flexibility options, those in a cash crunch need not worry and drive home the car of their dreams.
Benefits of availing of a Used car loan
Following are the four benefits of availing of a pre-owned car loan
- Flexible repayment plans
Those with financial issues have the option of customizing their repayment amount according to their incomes and cash holdings. Lenders offer various plans like Step Up plan, Step Down plan, Balloon plan, and regular EMI plan. Borrowers may therefore prepay their EMIs or make late payments based on their cash flows. Such flexible repayment plans provide a great degree of convenience to borrowers during a financial crisis.
- Avoid tedious documentation process
Used car finance comes to the rescue for those in dire need of finance. Most lending institutions these days approve loans without any tedious documentation procedure. If the applicant fulfils the car loan eligibility criteria and submits the required documents, the loan is approved quickly. The loan amount gets disbursed as soon as possible and the applicant may drive the car home immediately.
- No guarantor needed
Used vehicle loan is an attractive option for those who do not own assets like real estate or shares. Lenders these days do not require any guarantor against the loan. However, the loan is secured against the vehicle. Hence, if the borrower defaults on his payments, the bank can take ownership of the vehicle.
- Prevents borrowing from friends and family
Many-a-times people turn to their friends and families during a financial crisis. However, the dynamics of the relationship changes if they are unable to repay the amount on time. At such times, availing of a loan seems to be a feasible option. Borrowing a loan from financial institutions is a wiser decision than putting relationships with family and friends at risk.
Individuals who do not have the outright cash in hand to purchase a used car may avail of a used car loan. There are many loan options available in the market for those with bad credit. Such loans have lower down payment and flexible EMI plans, thus allowing those with poor credit to borrow a loan easily.
Every year around 1.5 lakh Indians die in accidents. Every four minutes, one Indian is killed on the roads, every day 16 children die in accidents. A man hit by a tempo bled on a Delhi road for 90 minutes on 11 Aug 2016 morning. Hundreds of people drove past the dying man, but not one person came forward to help. Accidents like these keep happening, but the question that remains unanswered is how can we avoid them? What can be done to increase road safety in India? Government has come up with Motor Vehicle Amendment Bill of 2016. Will it improve road safety in India?
Road Safety in India
Road Safety in India is a major issue and reports state that over 5 lakh road accidents happen every year, which results in more than 1.5 lakh individuals losing their lives. Here is a report released by the Ministry of Road Transport and Highways in Jun 2016 (Ref Hindu) road rash in India is as follows
According to analysis of the report by Save Life Foundation, an NGO that works towards improving road safety in India, a two-wheeler rider is the most vulnerable to fatalities on the road. Peculiarly, the age-group most frequently affected is between 15 and 44, while males constituted nearly 82 percent of the fatalities in 2015.
Motor Vehicle Amendment Bill 2016
The Union Cabinet chaired by the Prime Minister has given its approval for Motor Vehicle (Amendment) Bill 2016. The amendment aims to reduce the accidents and fatalities by 50 per cent in five years. The Government plans on doing so by imposing hefty penalties and fines on traffic offenders. Here are the major highlights of the Motor Vehicle (Amendment) Bill 2016.
The need for finance arises during the course of a business. Firms have many alternative channels to choose from various sources of funds. But the bottom line decision is to choose between short-term working capital loans and long-term loans, as both of these sources work differently. Deciding on which source to apply,Term Loans VS Working Capital Loans, for given the circumstances is a tricky one.
Working Capital Loan
Working capital loans are an important source of funding for businesses to generate immediate cash for their daily expenditures. Sometimes, firms are cash-strapped and may require help to cope up with seasonal business demands or to pay salaries to their employees or even the monthly rent. Assistance from such external sources may help to get the business on track.
However, working capital cannot be used for investments in a new project or business expansion activities, as they are short-term liquid loans. Such loans are given only for a period of less than a year. It is comparatively easier to get working capital loans, especially if you have a good credit score. It does not involve much paperwork, as it is provided for a shorter term. The interest rates for working capital loans are high.
Estimating working capital requirement is easier if you use a small business loan calculator. It helps analyze the amount of built up inventory plus the cash you owe from others, minus the amount you have to pay to your suppliers. In a nutshell, it is the difference between your current assets and your current liabilities.
Term loans are usually taken for a longer term; say one to 10 years. Such sort of finance is used to fund major investments, the purchase of machinery or expanding business reach. Such loans involves a huge amount of money, the payment of which is done in a period of years.
Usually, it is considered that working capital is expensive. However, you end up paying more interest on term loans because the interest of the loan keeps building up over the years. You can use the business loan calculator to estimate the total repayment amount with the principal and the interest.
Getting a term loan is not a cakewalk; it involves a number of procedures and paperwork. Financial institutions check the borrowing company’s credit worthiness, bank statements, reputation in the market, collateral and the ability to repay before investing in them.
Understanding the nature of funds and tailoring them as per business needs is crucial for the success of your business. The type of funding largely depends on your business requirements. If you need financing to meet immediate business demands or to pay off a small amount, then a working capital is the best-suited option. On the other hand, if you are considering expansion, modification of business or introduction of a new project, long-term loans are a good choice.