The document provides information about the Public Provident Fund (PPF) scheme in India. It details the key features of PPF accounts including eligibility, minimum deposits, interest rates, tax benefits, withdrawal and loan options. PPF accounts can be opened by individuals and minors, offer tax benefits under section 80C, and have favorable withdrawal and maturity terms including complete tax exemption on interest and maturity proceeds. The document also provides information on procedures for opening a PPF account, consequences of defaulting on minimum deposits, and contact details for a financial services firm.

1. Public Provident
Fund
EVERYTHING ABOUT IT

2. Features

3. 1.The Public Provident Fund Scheme is a statutory scheme of the
Central Government of India.
2.This account can be opened in the name of any individual or
minor under guardianship.
3.Account can be opened by residents only.
4.HUF cannot open PPF account effective 13th May, 2005.

4. 5. No age is prescribed for opening a PPF account.
6.After 15 years, this account can be extended for 1 or more
block of 5 years.
7.Rate of Interest on PPF varies from 8% to 9%. This rate every
year is decided by the Govt. and at present is 8.7%
compounded annually (as of April 1st 2015 – March 31st 2016).

5. 8. Nomination facility is also available.
9. One deposit with a minimum amount of Rs.500/- is mandatory
in each financial year. Minimum Investment to be done is INR
500 and maximum permitted investment is INR 1,50,000 in an
year effective Aug, 2014. Only 12 deposits can be made in an
year. The deposits shall be in multiple of Rs.100/- subject to
minimum amount of Rs.500/-.
10.Tax benefit is available for invested amount u/s 80C.

6. 11.This account can be opened in Authorised Banks and Post
Offices only.
12.Interest on maturity is fully tax exempt.
13.Deposits are exempt from wealth tax.
14.The balance amount in PPF account is not subject to
attachment under any order or decree of court in respect of
any debt or liability.

7. 15.Joint account is not permissible.
16.Those who are contributing to GPF Fund or CPF/PF account
can also open a PPF account.
17.A Power of attorney holder can neither open nor operate a
PPF account.
18.The grand father/mother cannot open a PPF account on
behalf of their minor grand son/daughter.

8. 19.This account can be transferred from one bank to another
bank/ post office and vice versa.
20.Loan and withdrawal facility is also available on the basis of
age and deposit amount.
21.One person can have only one PPF account at any point of
time.
22.Best for long term investment.

9. 23.The best time for deposit in the PPF a/c is between 1st to 5th
of the month as any amount deposited upto 5th of the month
( Interest is calculated on the balance between 5th and last
day of the month)
24.Nominee/legal heir of PPF Account holder on death of the
account holder cannot continue the account, but account
has to be closed.

10. Documents Required for
Opening PPF Account

11. 1. A recent passport size photograph.
2. Identity Proof copy with original to verify (Even PAN Card may
be accepted as all tax payers are having it).
3. Address Proof copy with original to verify.

12. Loan Facility from PPF

13. 1. One can avail loan from 3rd Financial Year to 5th Financial
Year.
2. Interest rate charged is 2% more than the prevailing interest
year.
3. Loan is to be repaid within 36 months.
4. Maximum 2 times loans can be availed.

14. 5. Second loan can be availed only if 1st loan is fully repaid.
6. Maximum of 25 % of the balance at the end of the 2nd
immediately preceding year can be taken as loan.
7. Loan facility is not available for inactive or discontinued
accounts.
8. After individual become eligible for withdrawal, loan facility
cannot be availed.

15. Withdrawal from PPF

16. 1. Withdrawal can be from the end of 6th Financial Year.
2. Maximum amount which can be withdrawn is limited to 50%
of the amount appearing in the account at the end of 4th
year preceding the year in which the amount is withdrawn or
the end of the preceding year, whichever is lower.
3. After 15 year, full amount can be withdrawn if the same is not
carried forward to another block of 5 years.

17. 4. One withdrawal can be made every year starting from the
7th Financial Year.
5. There is difference between loan and withdrawal. Loan
amount is repayable whereas amount withdrawn is not
repayable.

18. What will happen after 15 years

19. After 15 year, following options are available to the subscriber
(account holder):
1. Individual can withdraw 100% of amount including interest
and close this account. Amount received will be 100% tax
free including interest amount.
2. Individual can extend the PPF account by another 5 years for
unlimited number of times.

20. There are two options available in case of extension:
1. PPF account extended with fresh contribution every year. In
this case, 60% of the balance amount at the end of 15 years
can be withdrawn. Only one withdrawal per year is allowed.
In total, only 60% of the amount can be withdrawn.
2. PPF account extended without fresh contribution every year.
In this case, any amount can be withdrawn of the balance
amount at the end of 15 years but once per year.

21. Consequences of default in depositing PPF

22. 1. If anyone makes default in depositing minimum contribution
amount (INR 500 every year), account become inactive.
2. To activate the account, that person needs to deposit INR 50
as fine and INR 500 as subscription amount for every year for
which that person has made default.
3. Please note deactivated accounts do not earn any interest.

23. Finance and Tax HUB – A Complete Financial Solution
(Finance and Tax Consultant)
Managed by: Vineet Goyal HUF
Contact us for any tax or finance related queries. We have
a team of experienced professionals to handle your
queries.
Website: http://www.financeandtaxhub.in
Mobile No.: 9999046710
Email us: info@financeandtaxhub.in

24. Our Services
1. New company registration
2. TDS Registration & Returns
3. Service Tax Registration & Returns
4. Bookkeeping or Accounting
5. Tax Consultancy
6. Investment related advices
7. PAN card services
8. Income Tax Return (ITR) filing
9. MCA/ ROC related work
10. Maintenance of Statutory Records
11. Audit Services
12. 15CA & 15CB Services
13. Labour Laws Related Services which include PF & ESI
14. And many more ……….

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