Duration: 15 year Public Provident Fund Account (PPF )
Interest Rate: 7.1 % per annum (compounded yearly).
Deposit: Minimum INR. 500/- Maximum INR. 1,50,000/- in a financial year.
Frequency of deposit: Deposits can be made in lump-sum or in instalments.
Eligibility: any single adult, resident Indian
or a guardian on behalf of minor/ person of unsound mind
Limit: Only one account can be opened all across the country either in Post Office or any Bank.
Maximum limit of Rs. 1.50 lakh shall be inclusive of the deposits made in his/her own account and in the account opened on behalf of minor.
Tax Benefit: Yes, Under Section 80C
Minim Deposit: 500/- in a financial Year
Discontinued Account: If fails to achieve minimum deposit of 500/- in a financial year, the account will be discontinued. Discontinued account freezes and no withdrawal or loan facility available.
Revival of account: Discontinued account can be revived before maturity by paying minimum deposit amount of 500/- + 50/- (default fee) per default year.
Interest:- As per the notification of Ministry of Finance, credited to account at the end of financial year, Interest earned is tax free under Income Tax Act.
Loan: Can be availed after completion of one financial year, after opening of account (i.e. A/c open during 2021-22, loan can be taken in 2023-24) with conditions
Withdrawal: A subscriber can take 1 withdrawal during a financial after five years excluding year of account opening, with conditions.
Maturity: Account will be mature after 15 financial years excluding FY of account opening.
On maturity depositor has the following options:-
1. Can take maturity payment by submitting account closure form along with passbook at concerned Post Office
2. Can retain maturity value in his/her account further without deposit, the PPF interest rate will be applicable and payment can be taken any time or can take 1 withdrawal in each FY.
3. Can extend his/her account for further block of 5 years and so on (within one years of maturity) by submitting prescribed extension form at concerned Post Office.
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