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Sep 2, 2017

Learn: PPF in 10 issues Withdrawal, loan, transfer and other rules

Learn: PPF in 10 issues Withdrawal, loan, transfer and other rules


              Despite the reduction in interest rates, the PPF or Public Provident Fund is one of the most popular small savings schemes. Interest rates on PPF and other small savings schemes are reset every year from April every year compared to the previous year. PPF investors currently get 7.8 percent interest rates. The rate of interest on PPF and other small savings schemes is based on the yield on government bonds with a small mark-up. Regarding the effects of tax, PPF receives EEE or exemption, exemption, exemption status - contribution, interest and maturity. Taxes are allowed in all three.

Learn about 10 points about PPF rules.

1) Any person can own only one PPF account, one can also be opened on behalf of Minor. The joint account can not be opened.





2) One subscriber may open an account on behalf of a minor, but the maximum annual allocation limit in all accounts is Rs. May be 1.5 lakhs.



3) According to the India Post website, the minimum amount of Rs.100 to open a PPF account is given.



4) The minimum deposit in the PPF account is Rs 500 and the maximum is Rs. 1.5 lakhs. In the financial year, if the minimum amount of Rs. 500. Recovery of 50 rupees is done every year for not maintaining the account, PPF deposits can be deposited in a maximum of 12 transactions in the financial year.



5) The maturity of the PPF account is 15 years but the maturity for a further 5 years can be extended in one year. An account can be transferred from one authorized bank or post office to another. In such a case, the PPF account will be treated as the current account.



6) If the PPF subscribers earn at least Rs. If you can not deposit 500, the account is closed. In such cases, the subscribers will not be entitled to partial withdrawals until the loan is recovered or the account is revived. Apart from closing the subscribers account, other PPF accounts can not be opened.



7) One PPF subscriber is Rs. 50 / - deposited in the amount of Rs. For every year there can be a revival of Rs 500.



8) The PPF Depository Account is eligible for a loan in the third financial year of accounting. Loan upto 25% of the remaining amount can be obtained at the end of first financial year. The rate of interest on the loan will increase by 2% annually than the PPF interest rate. This loan is payable in 36 months.



9) According to the India Post website, it is possible to take partial withdrawal every year in the 7th financial year from the opening of the account, the limit of 50% of the total amount can be withdrawn before the withdrawal of the same amount, or at the end of last year or at the end of the last year. Is there.



10) According to the 2016 amendment, after account maintenance of five financial years in a row, expenses for medical treatment such as account holder, spouse or life-threatening children of dependent children are allowed to close the account under certain conditions.

1 comment:

  1. The acronym to PPF is Public Provident Fund. The PPF was introduced by the ministry of Finance in 1968.It was introduced as a tax saving scheme to mobilize small savings by offering a return on investment.

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