Friday, November 12, 2021

Public Provident Fund

Public Provident Fund
Public Provident Fund

PPF or Public Provident Fund is an investment funds plot presented by the Government of India. 

Which was presented by the National Savings Institute of the Ministry of Finance in 1968. The interest on the PPF account is paid by the Government of India and is fixed each quarter. It is likewise tax-exempt under segment 80C. As of now the PPF loan cost for first April to 30th June 2020 (Q1 FY 2020-21) has been fixed at 7.1%. The PPF loan fee for January - March 2020 (Q4 FY 2019-20) was 7.9%. 

Remarkable Features of PPF Account:- 

The head and interest in the PPF account are ensured by the public authority. 

Commitment to the record up to Rs 1.5 lakh per annum is tax-exempt. Interest on the PPF account is additionally tax-exempt. 

The loan cost for the PPF account is declared by the public authority each quarter. PPF returns are higher than the FD paces of many banks in that period. 

Any Indian resident can open a PPF account. 

There could be no upper age limitation for opening a PPF account. 

PPF records can be opened in mailing stations and parts of all administration and significant banks. 

Being an administration reserve funds conspire, venture security is completely ensured by the Government of India. 

Youngsters' records can likewise be opened under the guardianship of the gatekeeper. A youngster over 10 years old can likewise open it autonomously. 

This record can be opened with the least starting store of ₹ 500/ -. Also, it is compulsory to store in any event ₹ 500/ - in this record each year, in any case, there might be a punishment of ₹ 50/ - each year. 


Up to a limit of ₹1.5 lakh can be stored in each monetary year. What's more, there is an exception to store cash up to a limit of multiple times each year, which can be saved pretty much whenever as per their accommodation. 

There is likewise the office of saving cash in this record through NEFT/RTGS and net banking. 

Store, interest, and withdrawal of PPF account are excluded from a charge on every one of the three. Incomplete withdrawal sum following 5 years is additionally totally tax-exempt. 

A decent financing cost is accessible on the sum stored in the PPF account. A similar financing cost is given wherever in the mailing station and banks. 

The office of taking a credit against the store sum is additionally accessible from the third year of the PPF account. There is likewise an office to close the record in crisis following 5 years of record opening. 

After the fulfillment of 15 years of the PPF account, the whole sum alongside interest is paid. Even after the development of the record, its period can be reached out for the following five-five years. 

There is likewise an office to make a candidate in the PPF account. 

You can move the PPF account whenever to your closest mail center or bank office according to necessity. 

Qualification for PPF:- 

Any individual who is an occupant of India can open a PPF account. PPF records can likewise be opened by guardians for their minor youngsters. NRIs can't open PPF accounts. Notwithstanding, an occupant Indian who has turned into an NRI in the wake of opening a PPF record can proceed with the record till development. Shared services and the opening of different records are not permitted. 

Interest on PPF Account:- 

PPF is decent pay speculation. The loan fee on the PPF account is told by the focal government each quarter. The interest in PPF is determined by the base harmony between the finish of the fifth day of the month and the last day of consistency. By and by the loan fee of the PPF account is 7.9% (as of July19-Sept19). 

Residency of PPF account:- 

PPF account develops after the expiry of a long time from the monetary year where the record was opened. For instance, if the PPF account was opened on first February 2005, it will develop for a long time on 31st March 2020 for example from 31st March 2005. On development, you can expand the PPF account endlessly in squares of 5 years. 

Designation Rules for PPF Account:- 

Designation in the PPF record should be possible for at least one person. It likewise needs to determine the rate portion of every chosen one. Anybody, for example, parent, mate, relative, youngster, companion, and so on can be assigned. Structure E is utilized to add the candidate to the PPF account. 

Assignment should be possible whenever during the residency of the PPF account. Assignment can be changed, dropped, or changed through Form F. 

Duty exclusion in PPF account:- 

Commitment to PPF account (up to Rs 1.5 lakh per annum) is absolved under segment 80C of the Income Tax Act, premium acquired is excluded and development continues are likewise absolved from charge. The premium acquired on the PPF account must be referenced on the annual government form. 

Connection request insurance:- 

The PPF account can't be appended under any request or judgment of any court for any obligation or risk under the Government Savings Bank Act, 1873. It secures the record-holders against every one of the leasers including the Income Tax Department. 

Advance Against PPF Account:- 

The office of profiting advance against PPF account is accessible from the third monetary year till the sixth monetary year from the date of record opening. As such, the advance can be benefited whenever after the finish of one year from the finish of the monetary year where the record was opened, yet before the expiry of a long time from the finish of the monetary year wherein the record was opened. 

For instance, if the PPF account is opened on February 1, 2014 (Financial Year 2013-14), then, at that point, the finish of the monetary year wherein the record was opened is March 31, 2014. 

Thereafter loan can be taken from 1st April 2015 and a loan account can be opened

It will be available for the next five years from the end of the financial year till March 31, 2019 (Financial Year 2018-19).

The maximum tenure of this type of loan is 3 years. The maximum loan amount for PPF accounts is 25% of the balance at the end of the previous financial year in which the loan was applied for. For example, if an investor wishes to borrow in April 2014, the maximum loan balance as of March 31, 2013, would be 25%. Form D has to be submitted for the loan. PPF account.

The interest rate payable on loans taken against the PPF account is 2% higher than the current interest rate on the PPF account.

To reactivate inactive account:-

If an annual contribution of at least Rs 500/- is not made to the PPF account, the account becomes inoperative.

The application to revive the account has to be submitted at the post office or bank branch.

If the account becomes inactive every year then a penalty of ₹ 50/- has to be paid. and at least Rs.

Partial withdrawal from PPF account:-

Partial withdrawal can be made after a period of 5 years from the year of account opening. For example, if the account is opened on January 1, 2014, it can be withdrawn from the financial year 2021-22. Only one partial withdrawal is allowed in each financial year. 50% of the account balance up to the end of the current financial year or 50% of the account balance before the end of the current financial year can be paid by the end of the fourth financial year. . years. Form C has to be submitted for partial withdrawal from the PPF account.

In case of premature closure of PPF account:-

Premature closure of PPF account is not allowed within 5 years of account opening. After that, it can be stopped only for specific reasons, such as the serious illness of the account holder, spouse, dependent children, or parents, which is fatal. But you must have the necessary medical documents to prove this premise.

In case of death of the account holder:-

In case of the death of the PPF account holder, the nominee / legal heir of the PPF account can claim the income from the PPF account by producing the death certificate of the account holder. In addition, the claimant has to submit Form G and an application that will contain information related to the claim like account number, nominee details, etc.

Maturity of PPF Account:-

The PPF account matures after opening the account for a period of 15 years from the end of the financial year. On maturity, the account holder has the following options:-

Return to maturity

The account holder can withdraw the PPF amount as well as the interest earned. Exemption from income tax on maturity.

Extension of PPF with contribution-

The subscriber can extend the PPF account indefinitely in a block of 5 years at a time. The account holder has to submit Form H and apply for account extension along with other contributions. Once the contribution is increased, the account can be credited up to a maximum of 60% of the outstanding amount as of the date of extension in the account. This amount can be withdrawn in one go or can be withdrawn over several years. Withdrawals cannot be made more than once a year.

Forms to be used in PPF account:-

 Purpose of the form:

 PPF Form A Account Opening

 PPF Form B Contribution

 PPF Form C Partial Conduit

 PPF form d loan

 PPF Form and Admission

 Changes in PPF Form F Recruitment

 PPF form yes claim

 PPF form h extension

VISIT OFFICIAL WEBSITE: http://www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=55

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