Post Office – Public Provident Fund:
- Deposits can be made in lump-sum or in 12 installments.
- Joint account cannot be opened.
- Account can be opened by cash/cheque and In case of cheque, the date of realization of cheque in Govt. account shall be date of opening of account.
- Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another.
- The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
- Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.
- Maturity value can be retained without extension and without further deposits also.
- Premature closure is not allowed before 15 years.
- Deposits qualify for deduction from income under Sec. 80C of IT Act.
- Interest is completely tax-free.
- Withdrawal is permissible every year from 7th financial year from the year of opening account.
- Loan facility available from 3rd financial year.
- The PPF account can be opened in a Post Office which is Double handed and above.
From 1.4.2016, interest rates are as follows:- 8.10% per annum (compounded yearly).
|Type of Account||Minimum Amount for Opening||Minimum Deposit||Maximum Deposit|
|Public Provident Fund(Individual account on his behalf or on behalf of minor of whom he is the guardian)||INR 100/-||INR. 500/- in a financial year||INR. 1,50,000/- in a financial year|
Banks – Public Provident Fund:
There are Many Banks in Bangalore are supporting PPF Accounts Like ICICI, HDFC, Canara & SBI ..etc
1. ELIGIBILTY – Individuals in their own name as well as on behalf of a minor can open the account at any Branch. As per extant instructions, opening of PPF accounts in the name of Hindu Undivided Family is not permitted.
2. INVESTMENT LIMITS – A minimum of Rs.500.00 subject to a maximum of Rs.1,50,000 per annum may be deposited. The subscriber should not deposit more than Rs.1,50,000 per annum as the excess amount will neither earn any interest nor will be eligible for rebate under Income Tax Act. The amount can be deposited in lump sum or in a maximum of 12 installments per year.
3. DURATION OF SCHEME – Original duration is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.
4. RATE OF INTEREST – The rate of Interest determined by Central Govt. on quarterly basis. At present it is pegged at 7.90% per annum with effect from 01.04.2017. Interest is paid on 31st March every year. Interest is calculated on the minimum balance between 5th day and end of the month.
5. LOANS AND WITHDRAWALS – Loans and withdrawals are permitted depending upon the age of the account and balances as on the specified dates.
6. TAX BENEFITS – Income Tax benefits are available under Sec 88 of IT Act. Interest income is totally exempt from Income Tax. Amount outstanding to the credit is fully exempted from Wealth Tax also.
7. NOMINATION – Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber.
8. 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.
9. PREMATURE PAYMENT – Premature payment is allowed only after the account or the account of the minor account holder of whom he/she is the guardian has completed five financial years,
a) The amount is required for the treatment of serious ailments or life threatening diseases of the Account holder, spouse or dependent children or parents, on production of supporting documents from competent medical authority;
b) That the amount is required for higher education of the account holder or the minor account holder, on production of documents and fee bills in confirmation of admission in a recognized institute of higher education in India & abroad.