Monday, 24 December 2018

What is PPF Account - How to open Public Provident Fund Account Online | Withdrawal & Interest Rates

What is the Public Provident Fund (PPF) Account?


The PPF(Public Provident Fund) Scheme, 1968 is a tax-free investment funds road that was presented by the Ministry of Finance (MoF) in India in the year 1968. Premium earned on stores in the PPF account is not assessable.

Stores made towards PPF records can be asserted as assessment conclusions. This makes the PPF Scheme a standout amongst the most assessment productive instruments in India. It was propelled to energize reserve funds among Indians by and large, particularly to urge them to make a retirement corpus.

How to open a PPF account? 

Click here for -> How to open ppf account.

A PPF record can be opened with either a Post Office or with any nationalized bank like the State Bank of India or Punjab National Bank, and so on. Nowadays, even certain private banks like ICICI, HDFC and Axis Bank among others are approved to give this office. You have to present the properly filled application shape alongside the required records i.e. the KYC reports like character verification, address confirmation, and mark evidence. Post presenting these reports you can store an endorsed sum towards the opening of the record. 

2. What is the financing cost on PPF? 

The present loan fee is 8% (for quarter October to December 2018 preceding which it was 7.6%) that is intensified every year. The Finance Ministry set the loan cost each year, which is paid on 31st March. The intrigue is determined on the most reduced harmony between the end of the fifth day and a day ago or consistently. 

3. Basic highlights of PPF 

  • Residency: The PPF has a base residency of 15 years, which can be reached out in squares of 5  years according to your desire. 
  • Speculation Limits: PPF permits a base venture of Rs 500 and a greatest of Rs 1.5 lakh for each money related year. Speculations can be made in singular amount or in a most extreme of 12 portions. 
  • Opening Balance: The record can be opened with just Rs 100. Yearly speculations above Rs 1.5 lakh won't acquire intrigue and won't be qualified for expense spared. 
  • Store Frequency – Deposits into a PPF account must be made in any event once consistently for a long time. 
  • Method of store – The store into a PPF record can be made either by method for money, check, Demand Draft or through an online reserve exchange. 
  • Selection – A PPF account holder can assign a chosen one for his record either at the season of opening the record or along these lines. 
  • Shared services – A PPF record can be held just for the sake of one person. Opening a record in joint names isn't permitted. 
  • Hazard factor – Since PPF is supported by the Indian government, it offers ensured, without risk­ returns and in addition finish capital security. The component of hazard engaged with holding a PPF account is negligible. 
  • Who can put resources into PPF – Any Indian resident can put resources into PPF. One national can have just a single PPF account except if the second record is for the sake of a minor. NRIs and HUFs are not qualified to open a PPF account. 
  • Credit against PPF – You can take an advance against your PPF account between the third and fifth year. The advance sum can be a most extreme of 25% of the second year quickly going before the credit application year. A second advance can be taken before the sixth year if the primary advance is reimbursed completely.


4. PPF withdrawal

Generally speaking, one can close a PPF account just upon development i.e. after the consummation of 15 years. Endless supply of 15 years, the whole sum remaining to the credit of a record holder in the PPF account alongside the gathered intrigue can be pulled back uninhibitedly and the record can be shut. 

In any case, if account holders need assets, and wish to pull back before 15 years, the plan grants incomplete withdrawals from year 7 i.e. on finishing 6 years. 

A record holder can pull back rashly, up to a most extreme of half of the sum that is in the record toward the finish of the fourth year (going before the year in which the sum is pulled back or toward the finish of the previous year, whichever is lower). Further, withdrawals can be made just once in a money-related year. 

5. System for withdrawal from PPF 

On the off chance that you wish to in part or totally pull back the equalization lying in your PPF account, you can do as such by presenting an application for withdrawal in Form C with the concerned part of the bank where your PPF account lies. This frame is accessible for download here. 

This shape has 3 areas: 

1. Presentation area where you should give your PPF account number and the measure of cash you propose to pull back. Alongside that, you additionally need to make reference to how long have really gone since the record was first opened. 

2. Office use area which involves subtleties like: 

  • Date when the PPF account was opened. 
  • Add up to adjust remaining in the PPF account. 
  • Date on which the recently asked for withdrawal was permitted. 
  • Add up to withdrawal sum accessible in the record. 
  • The measure of cash authorized for withdrawal. 

  • Date and mark of the individual in control – as a rule the administration supervisor. 


3. Bank subtleties segment which requests the subtleties of the bank where the cash is to be credited specifically or the bank in whose support the check or the interest draft is to be issued. 

It is additionally compulsory to encase a duplicate of the PPF passbook alongside this application. 

6. What are the tax cuts of putting resources into PPF? 

PPF is one speculation vehicle that falls under the Exempt-Exempt-Exempt (EEE) classification. This, at the end of the day, implies that all stores made in the PPF are deductible under Section 80C of the Income Tax Act. Moreover, the amassed sum and intrigue is additionally be absolved from duty at the season of withdrawal. 

Note that a PPF account can't be shut before development. A PPF account, be that as it may, can be exchanged starting with one point of assignment then onto the next. In any case, do recollect that a PPF account can't be shut rashly. Just on account of the record holder's downfall can the chosen one's document for the conclusion of the record.

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