Loan facility is offered from third monetary 12 months upto sixth monetary 12 months. (Representative picture)
The account might be transferred to different branches/ different banks or Post Offices and vice versa upon request by the subscriber.
Public Provident Fund (PPF) is a long-term saving-cum-investment possibility scheme run by the federal government for Indian residents. It was first provided to the general public within the 12 months 1968.
The National Savings Institute, below the Ministry of Finance takes care of this voluntary scheme.
The authorities made some adjustments in 2019, therefore it’s now referred to as as Public Provident Fund Scheme, 2019.
Public Provident Fund Account: Features
- Investment limits a minimal of Rs.500 topic to a most of Rs.1,50,000 every year could also be deposited.
- Original length is 15 years. Thereafter, a subscriber can prolong the account for a number of blocks of 5 years every.
- The charge of curiosity is set by the federal government on a quarterly foundation.
- Loans and withdrawals are permitted relying upon the age of the account and balances as on the desired dates.
- Nomination facility is offered within the identify of a number of individuals. The shares of nominees might also be outlined by the subscriber.
- The account might be transferred to different branches/ different banks or Post Offices and vice versa upon request by the subscriber.
- Individuals in their very own identify in addition to on behalf of a minor or an individual of unsound thoughts can open the account.
Tax advantages in PPF account
Interest earnings is completely exempt from Income Tax. Income Tax advantages can be found below Sec 88 of IT Act.
Account might be retained indefinitely with out additional deposit after maturity with the prevailing charge of curiosity. The quantity within the PPF account just isn’t topic to attachment below any order or decree of a court docket of regulation.
Loan facility in PPF
Loan facility is offered from third monetary 12 months upto sixth monetary 12 months.
Account matures on completion of fifteen full monetary years from the tip of the 12 months through which the account was opened.
Interest charge of PPF
At current the rate of interest on PPF is 7.10% every year. The curiosity is compounded yearly.
The subscriber mustn’t deposit greater than Rs.1,50,000 every year as the surplus quantity will neither earn any curiosity nor can be eligible for rebate below Income Tax Act. The quantity might be deposited in lump sum or in installments.
Interest is calculated on the minimal stability (in PPF Account) between fifth day and finish of the month and is paid on March thirty first yearly.
Withdrawal from PPF account
Any time after the expiry of 5 years from the tip of the 12 months through which the account was opened, the account holder could, avail withdrawal by making use of in Form-2, from the stability to his credit score, an quantity not exceeding fifty per cent. of the quantity that stood to his credit score on the finish of the fourth 12 months instantly previous the 12 months of withdrawal or on the finish of the previous 12 months, whichever is decrease;
-Provided that the quantity of mortgage excellent, if any, together with curiosity shall be paid by the account holder earlier than availing the power of withdrawal,
The facility of withdrawal could also be availed solely as soon as in a 12 months solely from the accounts which haven’t change into discontinued.
How to open PPF account?
A PPF account might be opened with both a Post Office or with any nationalised financial institution by visiting the department or by on-line mode.
HUF and NRIs can’t open PPF accounts.
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