Public
Provident Fund (PPF)
The Public
Provident Fund (PPF) Scheme, 1968 is a tax-free & voluntary savings scheme
that was introduced by the Ministry of Finance in India in the year 1968. The
amount earned as interest on deposit in PPF account is totally tax free and we
claim the deposit amount invested in PPF as Income tax deductions under Sec
80C.
Key Feature
of Public Provident Fund (PPF) Accounts
1) We can
open a Public Provident Fund (PPF) account in any authorized and nationalized
public sector bank and post office.
2) Any
Indian citizen above the age of 18 year can open a PPF account but there is no
any upper age limit.
3) Non-resident
Indians (NRIs) cannot open a PPF account. However, if the account has open as
resident and there after he leave the country and obtain non-resident status
can continue to maintain their accounts until it matures.
4) Interest
rate announced and set by the government of India in the Union Budget.
5) In the
current Financial Year 2016-17, Interest rate is set to 8.10%.
6) All tax
saving scheme has a locking period of 5 years, in case of PPF there is also a
locking period of 5 year after that we partially withdraw the amount of PPF.
7) Amount
in PPF can be deposit through branch and also from the Internet Banking
facility provide by Bank.
Period:
The total
period of PPF account is 15 year with an extension of another 5 year period so
we can say the total period of PPF account after extension is 20 (15+5) years.
Interest
Rate
As
directed and announced by the government of India in their Union Budget, for
current FY 2016-17 is 8.10%.
Minimum
Deposit Amount
Account
can be open with a minimum amount of Rs. 100/- but as per guideline of
government of India, the minimum deposit should be Rs 500/- per financial Year
for satisfactory running of the account.
Maximum
Deposit Amount
The
maximum deposit amount per financial Year is Rs. 1,50,000/-.
Loan
Facility
It provides
the loan facility against the deposit held in their PPF account from the 3rd
year.
Nomination
Facility
As per
guideline of Government of India all account should have the nomination but it
is not mandatory. By nomination in the account is it easy to withdraw after
accident of account holder.
Transfer
Of Account
The
account can be transferred to other branches/ other banks or Post Offices and
vice versa upon request by the subscriber. The service is free of charges
Tax Benefit
Amount
deposit in PPF can be claim under Sec 80C.
KYC for
PPF
1. Passport
2. PAN
Card
3. Aadhaar
Card
4. Driving
License
5. Voter’s
ID
6. Bank
Account Statement
Thanks.
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