PUBLIC PROVIDENT FUND – Here Are The Things You Need To Know By C A Yashaswini Amin

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#NRImoneyclinic #PublicProvidentFund #PPF

1.00

PPF ACCOUNT

Minimum Subscription Of Rs 500
Every Year You Need To Pay This Minimum
Maximum Per Year Is 1,50,000
You Can Open Account At A Bank Or Post Office

1.30

PPF ACCOUNT

You Can Invest Max 1.5 Lakhs In One Instalment
You Can Invest In Monthly Instalments Too

1.55

PPF ACCOUNT

How Long Should I Stay Invested ?

Maturity Of Scheme In 15 Years
Thereafter You Can Extend It Every 5 Years

2.30

PPF ACCOUNT

Who Can Invest?

Open For All Resident Indians
NRIs Cannot Open PPF Account

3.30

PPF ACCOUNT

What Happens To My PPF When I Become A NRI ?

If Opened As A Resident Individual You Can Continue As NRI
You Can Hold It Till Maturity But Cannot Extend Term
You Can Continue To Contribute As Planned Earlier
Maturity Proceeds Cannot Be Transferred To NRE Account

4.15

PPF ACCOUNT

Can I Extend Maturity After 15 Years?

You Can Extend It For Blocks Of 5 Years At A Time
You Can Keep Repeating It As You Complete 5 Years

5.0

PPF ACCOUNT

What Are My Tax Benefits ?

Contribution Qualifies For Deductions Under Section 80C
Interest Earned Is Tax Free Every Year
Maturity Proceeds Are Also Tax Free
It Gives EEE Tax Benefits ( Exempt, Exempt, Exempt)

5.40

PPF ACCOUNT

What Is The Rate Of Interest ?

Special Interest Rate Applies
Current Interest Rate Is 7.1
Interest Rates Are Notified Every Year
Interest Accrual Date Is 31 st March Every Year

6.10

PPF ACCOUNT

What Are My Tax Benefits ?

Contribution Qualifies For Deductions Under Section 80C
Interest Earned Is Tax Free Every Year
Maturity Proceeds Are Also Tax Free
It Gives EEE Tax Benefits ( Exempt, Exempt, Exempt)

7.25

PPF ACCOUNT

Can I Make Withdrawals?

Not Possible During First 5 years
Withdrawals Are Restricted
You Can Withdraw Only Once In A Year
Complex calculation To Check Withdrawal Limit

10.20

PPF ACCOUNT

Can I Take A Loan ?

Yes , But Restrictions Exist
You Can Take A Loan Between 3rd & 6th Year
Complex calculation To Check Eligible Loan Limit
Loan Can Be Availed Only Once A Year

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