1. It may be noted that PPF accounts can no longer be opened in name of HUF. Initially when the scheme was framed, it was possible for HUE to open a PPF account. The restriction on opening account in th,e’ name of HUF were put into place w.e.f. 13th May, 2005 vide Notification No. GSR 291(E) dated 13th May, 2005 from Ministry of Finance. However, this did not affect the account which were already in existence as they could have continued till the maturity.
2. Though the notification as above did not effect the accounts which were already opened in the name of HUF, the limit of Rs. 70000/- which could be deposited by a person was made applicable to the following types of account vide Notification No. GSR 6Z9(R) dated 4/10/2002:
- Individual self account and account(s) on behalf of minor(s) of - which the individual is guardian, taken all account together.
- Hindu Undivided family account
- AOP account as applicable in the State of Goa and Union territories of Dadra and Nagar Haveli and Daman and Diu.
It may be noted that vide Notification No.956(E) dated 7th December,2010,reported in (2011) 330 ITR (St.)1, the Provident fund Scheme,1968 has been amended to provide that an account opened on behalf of a Hindu undivided family prior to the 13th day of May, 2005, shall be closed after expiry of fifteen years from the end of the year in which the initial subscription was made and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him. In the case of accounts opened on behalf of Hindu undivided family, where fifteen years from the end of the year in which the initial subscription was made, has already been completed, they shall also be closed at the end of the current year, i.e., the 31st day of March, 2011 and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if any, in respect of any interest due from the subscriber on loans taken by him.
Thus, in view of the Notification hereinabove, those HUF PPF accounts which have already completed 15 years from the date of initial deposit as on 31/3/2011 and the entire amount has to be refunded in the manner hereinabove.
Thus, the combined effect of the above is that HUF can no longer open PPF Account and no deposit also can be made in the HUF account.