PPF Account Details - Public Provident Fund

About PPF Account Details - Public Provident Fund Android App

The Scheme introduced by the National Savings Organization in 1968 to mobilize small savings. The Scheme offers an investment avenue with decent returns coupled with income tax benefits. Salient features of the Scheme are as follows:

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. 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.

5. NOMINATION - Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber.

6. 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.

Public Provident Fund (PPF) :-

The Scheme is for 15 years. Extension of 5 years for any number of times

Public Provident Fund Interest Rate is fixed Quarterly by Government of India.

Account can be opened by an individual or a minor through the guardian.

Joint account is not permissible.

NRI and HUF are NOT eligible to open PPF A/c.

The minimum deposit is 500/- in each financial year and maximum is Rs. 1,50,000/- in a financial year

The deposit can be either in lump sum or in instalment - maximum 12 in a year

The discontinued account can be activated by payment of minimum deposit of Rs.500/- with penalty of Rs.50/- for each defaulted FY

The deposits shall be in multiple of Rs.100/- subject to minimum amount of Rs.500/-

The deposit in a minor account is clubbed with the deposit of the account of the Guardian for the limit of Rs.1,50,000/-

Nomination facility available.