Know Public Provident Fund Eligibility, Minimum and Maximum Pay Limit
PPF(Public provident fund) scheme is a long term investment Scheme backed by the government of India ,framed under the Public Provident Fund Act,1968.
Moreover It offers safety with best interest rates and tax free benefits.
Who are Eligible To Open Public Provident Fund Accounts?
(a). Individual or individual as a guradian of a minor can open a PPF account.
(b).Only one account can be opened by an individual with his/her name.
WHAT ARE THE MAXIMUM AND MINIMUM PAY LIMITS TO A PPF ACCOUNT?
Minimum subscription of rupees 500 and maximum it goes for rupees 1,50,000 per year.
WHAT IS MATURITY PERIOD AND WITHDRAWAL PROCEDURE IN PPF
ACCOUNT?
The maturity duration of the account is for 15 years .
The account can also be continued after 15 years with the blocks of 5 years without any loss of earlier interest.
WHAT IS THE RATE OF INTEREST PROVIDED BY BANKS?
The interest rate is notified by the central government in annual budget from time to time.
Currently it is 7.1% for 2020-21.
IS THERE NOMINATION OR TRANSFER FACILITIES IN PPF ACCOUNTS?
Yes, PPF scheme facilitates nomination of one or more persons.
Yes, account is also transferable to the permitted branches of nationalised or private sector banks.
CAN A PPF ACCOUNT CONTINUE WITH DEPOSITS AFTER MATURATION?
Yes, PPF account can be continued with fresh deposits after maturity in the block of 5 years.
Alos It can also be continued without fresh deposits on the basis of interest accumulated in the account.
HOW IS THE REPAYMENT OF THE AMOUNT IS DONE AFTER THE DEATH OF SUBSCRIBER?
Repayment is to be made to the nominee or to the legal heirs.
WHAT ARE THE INCOME TAX BENEFITS UNDER PPF SCHEME?
Interst rate is totally exempt from the income tax.
Also You will have to provide all the proofs of PPF investment at the time of filling the
income tax returns.
• If the rate of interest provided is 8.1%.Then after maturation period
the maximum benefits provided is following:
These were some major details of the PPF and Eligibility and each major details.
Written By Deepak Kumar (Senior Analyst)
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