Scheme introduced by Central Government in 1968. The Scheme enables the members of the public to make contributions to the Fund and obtan Income Tax rebate under the relevant provisions of the Income Tax.
- Individuals on behalf of a minor
- Minimum Rs.500/- per annum in multiples of Rs.5/-
- Maximum Rs. 1,50,000/- per financial year
- 15 years
- Can be extended for one or more blocks of 5 years
- Account can be discontinued but repayment of subscriptions along with interest only after 15 years.
Rate of Interest
8.1% (w.e.f. 01-04-2016) per annum credited in account on 31st March every year calculated on the minimum balance between 5th day and end of the month.
Loan upto 25% of balance at the end of first financial year from third to sixth year. Second loan can be taken on full payment of first loan.
Only one withdrawal allowed during any one year from sixth year. Withdrawal limited to 50% of the balance at the credit at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.
The account extended beyond 15 years; partial withdrawal allowed upto 60% of the balance to the credit at the commencement of the extended period
- Benefit available u/s 88 of the I.T. Act.
- Interest totally exempt from Income Tax.
- Amount standing to the credit is fully exempted from Wealth Tax.
- Subscription in one or more maximum 12 instalments.
- Nomination available in the name of one or more persons.
- Nominee can not continue account of the deceased subscriber in his/ her own name.
- An account may be transferred at the request of the subscriber free of charge by one branch to another branch.
- Premature closure of a PPF account on grounds of genuine hardship could be considered only after the expiry of five years from the end of the year in which the account was opened.
- The subscriber may discontinue his account anytime after joining the fund. The repayment of the subscription with interest will be made only after 15 years form the end of the financial year in which the account was opened.
- Discontinued account can be revived on payment of Rs.50/- per year along with arrears of subscription of Rs.500/- per year.