Business Mantra: Faridabad
Any Indian National, a permanent resident, of the age of 18 and above is entitled to open a Public Provident Fund (PPF) Account. No upper age limit has been fixed for opening of this account. An account of minor below the age of 18 can also be opened by the natural guardian. One person can open only one account in his name. Non Resident Indians cannot open a PPF account, however, an account already opened before one becomes NRI, can continue his PPF account till 15 years and in such cases no further extension is allowed to that account. Hindu Undivided Family (HUF) also is not entitled to open their PPF account after 13th May, 2005 notification.
Documents required to open PPF Account:
- Copy of PAN Card.
- Copy of Address Proof i.e. Passport, Driving Licence, Voter ID, Employer’s ID, Rent/Lease Agreement, Utility Bill etc.
- Passport sized photographs.
- Account Opening Form in Form A.
- Nomination Form in Form E.
- If account is to be opened in the name of Minor then date of birth proof of Minor, like Birth Certificate, School Certificate etc
Account can be opened with a minimum of Rs.500/- by way of cash, cheque. A minimum of Rs.500/- and a maximum of Rs.150000/- can be deposited in PPF account every year. One cannot deposit more than 12 times in a financial year, but one entry of Rs.500/- (minimum) is compulsory to deposit in one financial year.
Where to open PPF Account:
PPF Account can be opened in a designated Post office and designated Bank branches may it be private or nationalized Bank.
Forms applicable for PPF:
The following forms have been standardized in the PPF Scheme under The PPF Act, 1968:
- Form A: Account opening form for PPF.
- Form B: Pay-in-slip for deposit of PPF Amount or repayment of Loan against PPF.
- Form C: Request form for partial withdrawal from PPF
- Form D: Request form for Loan against the PPF Account.
- Form E: Form for making nomination in the PPF Account.
- Form F: Form to make any change in the nomination at any further point of time.
- Form G: A request form for claim of PPF Account proceeds by the nominee, after the death of the PPF Account holder.
- Form H: Request Form for extension of PPF Account for further 5 years beyond 15 years.
Rate of Interest on PPF Account:
Present applicable rate of interest on PPF Account is 8.1% for the financial year 2016-17.
EEE benefits of PPF:
- Exemption on deposit up-to Rs.150000/- under Section 80C of The Income Tax Act, 1961 in one financial year.
- Exemption of Total Tax on Interest earned on PPF Account, throughout the scheme.
- Exemption at the time of Withdrawal/closure of the Account
Open the PPF Account today and avail the benefits of the Scheme.