Who can open a PPF Account?
An individual can have
only one PPF account in his name and may also subscribe on behalf of:-
Behalf of a minor of
whom he is the guardian or on behalf of a Hindu Undivided Family (out of the
income of the Hindu Undivided Family) of which he is a member or on behalf of
an Association of persons or a Body of individuals, any amount not less than
Rs. 500 and not more than Rs. 1,00,000/- increased from Rs. 70,000 per annum
w.e.f. 01.12.2011.
Non Resident Indians
are not eligible to open an account under the Public Provident Fund Scheme.
Provided that if a
resident who subsequently becomes Non Resident Indian during the currency of the
maturity period prescribed under Public Provident Fund Scheme, may continue to
subscribe to the Fund till its maturity on a Non Repatriation Basis.
Where the PPF account can be opened?
PPF accounts can be
opened at designated branches of State Bank of India and its associate banks,
designated branches of other nationalized banks & all Head Post Offices and
other designated Post Offices
What are the tax benefits from PPF?
·
Deposits made in PPF accounts [ Upto a maximum of Rs. 1,00,000/-
limit revised frpm Rs. 70,000/- w.e.f. 01.12.2011 are eligible for deduction
under limit of Section 80C of Income Tax Act.
·
On maturity, the entire amount including the interest is
non-taxable.
·
Entire deposit in a PPF account is exempt from the Wealth Tax.
Minimum And Maximum Amount that can be deposited?
Any amount not less
than Rs. 500 and not more than Rs. 1,00,000/- limit hiked from Rs. 70,000/- in
a year w.e.f. 01.12.2011.
Number of subscription in a year
The subscription in
multiples of Rs. 5 may, for any year, be paid into the account in one lump sum
or installments not exceeding twelve in a year.
What to do if subscriber fails to deposit amount in any year?
A subscriber who fails
to subscribe in any year according to the limits of minimum amount, may
approach the Accounts Office for condonation of the default, on payment, for
each year of default, a fee of Rs. 50 alongwith arrear subscription of Rs. 500
for each year.
Transfer of PPF Account?
A subscriber may apply
for transfer of his account from one "Account Office" to another
"Account Office".
Withdrawals from the PPF Account
Any time after the
expiry of five years from the end of the year in which the initial subscription
was made, a subscriber may, if he so desires, apply in Form C or as near
thereto as possible, together with his pass book for withdrawing from the
balance to his credit, an amount not exceeding fifty per cent of the amount
that stood to his credit at the end of the forth year immediately preceding the
year of withdrawal or at the end of preceding year, whichever is lower, less
the amount of loan, if any, which remains to be repaid.
Provided that not more
than one withdrawal shall be permissible during any one year.
Closure of account or continuation of account without deposits after maturity
Any time after the
expiry of 15 years from the end of the year in which the initial subscription
was made by him, a subscriber may, if he so desires, apply in Form C, near
thereto as possible together with pass book.
Continuation of account with deposits after maturity
On the expiry of 15
years from the end of the year in which the initial subscription was made but
before then expiry of one year thereafter, may exercise an option with the
Accounts Office in Form H, or as near thereto as possible, that he would
continue to subscribe for a further block period of 5 years.
Loan against PPF Account
Any time after the
expiry of one year from the end of the year in which the initial subscription
was made but before expiry of five years from the end of the year in which the
initial subscription was made, a subscriber may, he so desires, apply in Form D
or as near thereto as possible, together with his pass book for obtaining loan
not exceeding twenty five percent of amount that stood to his credit to at the
ends of the second year immediately preceding the year in which the loan is
applied for.
Loan against PPF Account in Minor Child's account
Where the application
is made by a person who has made subscriptions to the Fund on behalf of a minor
of whom he is the guardian, he shall furnish a certificate in the following
form to get loan as above, namely:-
" Certified that
the amount for which loan is applied for is required for the use of --- . Who
is alive and is still a minor."
Repayment of loan and interest
The principal amount
of a loan under this Scheme shall be repaid by the subscriber before the expiry
of thirty six months from the first day of the month following the month in
which then loan is sanctioned.
The interest on loan
amount increased from 1% to 2% per annum against the prevailing interest rates.
Nomination and repayment after death of subscriber
·
subscriber to the fund may nominate in Form E or, as near
thereto as possible, one or more persons to receive the amount stading to his
credit in the event of his death before the amount has become payable or,
having become payable,has not been paid. Note:- Nomination may also be made in
respect of an account opened on behalf of a Hindu Undivided Family (HUF).
·
No Nomination shall be made in respect of an account opened on
behalf of minor
Rate of Interest payable in PPF Account?
Interest at the rate,
notified by the Central Government in official gazette from time to time, shall
be allowed for calendar month on the lowest balance at credit of an account
between the close of the fifth day and the end of the month and shall be
credited to the account at the end of each year.
Provided that where
the interest to be credited contains a part of a rupee. Then, if such part is
fifty paise or more, it shall be increased to one complete rupee, and if such
part is less than fifty paise, it shall be ignored.
Public provident fund
(PPF) will earn an interest of 8.7%, reduced from 8.8 % and the new rates are
effective April 1, 2013.
Flash News Interest rate on PPF has been redcued by 0.1 percent to 8.7 percent from present rate 8.8%. The new rates are effective from April 1, 2013.
PPF Interest Rates Over a Period of Time from April-1986
|
Period
|
Rate
|
|
01.04.1986 to 14.01.2000
|
12%
|
|
15.01.2000 to 28.02.2001
|
11%
|
|
01.03.2001 to 28.02.2002
|
9.5%
|
|
01.03.2002 to 28.02.2003
|
9%
|
|
01.03.2003 to 30.11.2011
|
8%
|
|
01.12.2011 to 31.03.2012
|
8.6%
|
|
01.04.2012 to 31.03.2013
|
8.8%
|
|
01.04.2013 onward
|
8.7%
|