INSUBCONTINENT EXCLUSIVE:
A minimum of Rs 500 can be deposited in a PPF account, according to SBI.Public Provident Fund or PPF account, a retirement planning-focused
The PPF scheme, which was introduced by the National Savings Organization in 1968 to mobilize small savings, offers an investment avenue
behalf of a minor can open the account at any branch
As per extant instructions, opening of PPF accounts in the name of Hindu Undivided Family is not permitted, according to SBI
annum can be deposited in a PPF account
Any excess amount , if deposited, neither earns any interest nor is eligible for rebate under Income Tax Act
The amount can be deposited in lump sum or in a maximum of 12 installments per year.Maturity PeriodThe original duration of PPF account is
Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each, according to the SBI website.Interest
rateInterest rate is determined by central government on quarterly basis
At present it is 7.9 per cent per annum
Interest is calculated on the minimum balance (in PPF account) between fifth day and end of the month and is paid on March 31 every year,
according to SBI.Income tax benefitsIncome Tax benefits are available under Section 88 of the Income Tax Act
Interest income is totally exempt from Income Tax
Amount outstanding to the credit is fully exempted from Wealth Tax also.Premature withdrawalPremature payment is allowed only after the
account holder has completed five financial years, where the amount is required for the treatment of serious ailments or life threatening
diseases of the account holder, spouse or dependent children or parents, on production of supporting documents from competent medical
Also, the amount can be prematurely withdrawn for higher education of the account holder or the minor account holder, on production of
documents and fee bills in confirmation of admission in a recognized institute of higher education in India and abroad.
