ppf account tax-free investment opportunity for all Indian citizens. highly flexible for paying installment minimum 500-150000 for the year either lump sum or installments. easily reactivate ppf account with the late fee of 50 INR for the year.
PPF-Public Provident Fund
Public Provident Fund scheme details and how to work PPF?
The Public Provident Fund scheme is introduced by the ministry of Finance in the year 1968. It has been introduced purpose tax-free savings employers amount. In this account was working like tax-free account not any more deductions in deposit amount. This is the most effect and most use of tax-free in India. It was establishment time to encourage to saving money in Indians in general purpose and also use of retirement time use scheme.
How to open a PPF Account?
The PPF account work same like fixed deposit bank accounts, this also work as bank account but not pay tax deposited amount to pay some interest rate in mature time in the public provident fund. The PPF of the last financial year 2015-2016 interest rate was 8.7%. This rate has been replaced to Union Budget 2016 for the financial year 2016-17 interest rate have been 8.1%
This scheme was launched to encourage savings in Indian people income classes, in this account deposited minimum amount and save them. They are also tax-free account, PPF accounts are easily open and understand the every people this deposit period is minimum 15 years. PPF member also can extend the account for 5 years with/without paying the contribution. For example, there can be in this year may 31st 2017 your ppf account deposit money matured you extend to your account then you will be extended in next 5 years at a time now next matured time is 31st may 2022 again extended in next 5 years on may 31st 2027.
Easily open PPF account in nationalized, authorized bank and authorized branches or post offices. PPF account can also open authorized private banks. This account can be open by taking form on the authorized branch and then fill all required details, then after submitted the same branch, after given the account in the authorized bank then will deposit money in the same account number.
This deposited money to give interest rate in authorized banks these rates are announced every year. This announcing rate same will be given money to authorized banks. Our FDs, to pay banks not entire fixed interest rates every year changed to announce the rates. Deposit money matured time to give the average of rates to give money.
What are Rules and how to avail PPF scheme?
The main theme of Public Provident Fund scheme
- Interest rates: PPF accounts deposited money on interest rates announced by the central government of India. These are announced in union budget time ( PPF present interest rate is fixed at 8.1% annually)
- Tenure: PPF account deposited money matured time or period time is 15 years.
- Initial investment or deposit: Public Provident Fund account open starting at Rs.100
- Annual Deposit amount: PPF account open after deposit money minimum Rs.500 to 1.5lakhs per year ( as per government rules)
- Deposit regularly: Public Provident Fund accounts into deposit money every 15years, to maintain the account activated otherwise deactivated to account.
- Deposit methods: Cheque, PO, DD, Via cash, Online funds transfer, one-time deposit or up to 12 instalments.
- Withdrawals methods: FD’s withdrawals are pre-mature time given on deposit money in percentage or partial withdrawals some amount on every year but after 7 years.
- TAX-free: Deposited money after mature time not deducted tax. This deposited money is the cover to U/S 80C of the Income Tax Act. So not deducted money of tax. It is free to income tax act.
- Nominees: PPF scheme allowed nominees; these are account open time or deposit time to enter to nominees details.
- Fund transfer: PPF scheme not allowed funds transfer but accounts transfer same branch one bank to other bank or post office.
- Loan facility: Loans can be given against to PPF account of FD’s. these are given after 3years to 6years
- Renewal: You can also renew it for 5 years. Then after also extend the same process.
- Join account: Not allowed join accounts.
check epf account balance, and VPF Account (voluntary provident fund available with epf account.
PPF scheme Benefits of FD’s
Some of main advantages’ of PPF scheme
- Ultimate long-term investments: the tenure periods are 15years. This bond taken to banks and given loans on FD’s rates. Banks provide attractive loans of PPF account based.
- Retirement scheme: PPF is providing retirement schemes, this scheme is long terms investments schemes.
- Tax-free: PPF FD’s not paid tax. This tenure time not deduction our money on tax. PPF is not the payable scheme of taxes.
- Easily open PPF account: PPF schemes account open in authorized banks or post office, easy to open the account.
Rules of PPF account scheme
PPF schemes have a lot of rules in early 1968. In this time government given some rules, there is open time documentation and nominees details, PPF account opening money, deposit money into the minimum amount and maximum amount, and also given tenure years and extended years, closing account and also transfer account which branches use, and more rules given.
Eligibility criteria of open PPF Account
- One person opens one PPF account not more than. And also age limit is 18years older, no limit of above age.
- PPF account open minor also but some restricted to open PPF account in banks
- NRI’s also open PPF account. NRI’s open Public Provident Fund deposited some amount after returned to tenure time close to given money but not extended tenure time
- Other country people’s can’t be eligible PPF scheme
PPF Account opening documents (Banks or post office)
PPF account opening some documents, and details required
- Identity or Address proof like Aadhar card, PAN card, Driving license, Voter ID, Bank account statements, Ration card
- Nominees photos and details
- And also banks need documents
PPE account can be open by authorize banks or post offices, these type of account can be open with Rs. 100 but you have to maintain at least 500 annually.
PPF account opening on post office
Public Provident Fund needed person visiting the nearest post office and taken PPF account form, next fill all required details and attached documents, after will go post office then submitted all documents and deposit money then take PPF account passbook.
PPF account opens on Banks
Governance rules of regulation to give some authorized banks to open PPF account, these are banks to visit and collect form after filling all fields then after attaché requirement documents (KYC), after will you go submitted all documents, deposit money, banks given account number.
PPF account opening rules and regulation forms
Governance is conducted some rules and regulation’s given in forms in A-H
- Form A- PPF accounting open details
- Form B- Deposits details and Loans against PPF account details
- C- FD’s partial withdrawals details
- Form D- Loan against PPF account
- E- nominee’s details
- Form F- changes to nominees details
- G- Claim details
- Form H- Extend the tenure details
ppf account: we can open it at the post office and all nationalized and private banks like ICICI and HDFC etc.
SBI ppf: its very popular but we have to visit the bank, note that sbi branches do not provide ppf accounts. a saving account should with the bank.
ppf calculator: every it accumulated by the rate of interest per annum .limit of 1.5lakhs for the year.
ppf interest rate: as of now the Financial year 2017-18 ppf interest is 8.1% previous FY 8.6% highest in 2011 12%.
New ppf rules 2017-18:
- lock in period 15 years.
- every Indian citizen can open the ppf account.
- no need to pay on monthly on specified very flexible.
- minimum and the maximum investment of year is 500INR to 1,50,000 INR.
- NO Tax on investment and return.
- Premature withdrawals up to 50% available from 7th year.
- loan available from 4th year 25-50% of the loan on your ppf balance.
- minor can also open a ppf account.
- No joint Public provident fund PPF account available.
- we can Extend the ppf account after maturity for 5 years.
- open PPF at SBI https://www.sbi.co.in/portal/web/customer-care/faq-public-provident-fund
- Bank of Baroda http://www.bankofindia.co.in/english/ppf.aspx
- ICICI https://www.icicibank.com/Personal-Banking/investments/ppf/ppf.page
- Post office https://www.indiapost.gov.in/Financial/Pages/Content/PPF-Account.aspx
- HDFC http://www.hdfcbank.com/personal/products/investments/public-provident-fund