Public Provident Fund Account Sailent Features

By | November 24, 2015

Public Provident Fund Account

  • From 1.4.2014, interest rates are as follows:- 8.70% per annum (compounded yearly).
  • Minimum INR. 500/- Maximum INR. 1,50,000/- in a financial year.
  • Deposits can be made in lump-sum or in 12 installments.
  • An individual can open account with INR 100/- but has to deposit minimum of INR 500/- in a financial year and maximum INR 1,50,000/-

    • 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.

    No attachment under court decree order.

    • The PPF account can be opened in a Post Office which is Double handed and above.

One thought on “Public Provident Fund Account Sailent Features

  1. Pingback: PPF Withdrawal allowed after 5 years for Medical /Education Purpose | Tax Heal

Leave a Reply