Public Provident Fund or PPF is the fixed income and tax saving scheme which is most commonly used by employees all over India. Any adult Indian or minor through guardian can open public provident fund account easily. There are options to open public provident fund in all major banks and post offices. But it will be applicable for a person to open account in nearest area of residence only. But we must have savings account in such banks to open a public provident fund account. First step is to fill the application along with Form A for PPF account. The account holder can opt for paying an amount which is multiple of RS.5/- starting from Rs.500/- and Rs.7000/- per year. Also account holder can pay in monthly installments or in one lumpsum as per wish.
An account holder can deposit the amount by either cash or cheque by filling from B. also if paying through cheque the account holder must provide cheque of the same bank where he opened public provident fund. Interest for public provident fund is 8% which can change as per the rules and regulations of the bank. Interest will be credited into account once in a year. Interest calculated every month with respect to the lowest balance maintained in account in between fifth day and last day of each month. An account holder can withdraw the PPF amount after expiry by submitting Form C. Normal expiry period is 15 years from starting account and if want we can extend the account by submitting an application along with Form H.
One year from the date of expiry is normally allowed for extending the public provident fund account. Partial withdrawal facility is also available in PPF. But the account must complete a period of five years from the date of end of year in which the account started. Also the partial withdrawal amount must be less than the amount which the account holder paid in total up to the end of fourth year. Applicant must submit an application along with Form C to the respective bank or post office for making partial withdrawal. Also partial withdrawal is allowed only once in a period of one year. The account holder must bring the passbook given by the bank at the time of opening to close the account and to withdraw amount.
The pass book contains all information such as deposit, withdrawal, interest and repayment. Also the account holder must update the pass book periodically or once in a year to get exact details of deposit or withdrawal. Duplicate pass books will be issued from bank in case of loss or theft of original pass book. The applicant has to give intimation in writing to the bank or post office in case of theft or loss of pass book. There will be small fees for new duplicate pass book. Also option is there for transferring public provident fund account from one branch to another branch of the same bank by submitting an application with details. Also if the applicant fails to pay minimum payable amount they will attract a fine up to Rs. 50/- per year.
.
Related posts:
- Public Provident Fund (PPF)
- Public Provident Fund (Amendment) Scheme, 2010 – Amendment in paragraph 9
- Latest Amendments to Employees’ Provident Fund and Pension Schemes – More Hardship for International Workers
- Tax Treatment of Provident Funds
- All You Wanted to Know About EPF and PPF
Sponsored Links