Yes, this is true. The rule of 25th July, 2003 states that ‘Non Resident Indians are not eligible to open an account under the PPF Scheme’. But there is a silver lining for some NRIs. If you already had a PPF account, when you were resident in India, and during… Continue reading
You can close the account after completion of 15 years or the expiry of 15 years from the close of the financial year in which the initial subscription was made. In case of death of the account holder, the balance amount in the account of the deceased account holder will… Continue reading
Your account is considered de-activated. In order to reactivate your account, you need to pay a fine of Rs.50 for each year that you have not made any subscription, and also make a minimum subscription of Rs. 500 for each year you have missed. Then your account will be reactivated… Continue reading
This is an interesting fact that not a lot of people, and in fact not a lot of banks know. And at PersonalFN, we have some clients who have actually informed their banks of what the correct PPF rules are! Once your account matures, you have 3 choices. Either you… Continue reading
Yes. You can take a loan from the fund in case of need, you don’t have to wait till you become eligible for withdrawals from the account.The PPF rulebook states it as follows:“Notwithstanding the provisions of paragraph 9, any time after the expiry of one year from the end of… Continue reading
Yes, you can make one withdrawal per year starting from your seventh year. The first withdrawal can be done after the expiry of 5 full financial years from the end of the year in which your initial subscription was made. The amount of withdrawal will be limited to 50% of… Continue reading
Firstly, you can invest in multiples of Rs. 5 with a minimum investment of Rs. 500 per annum, and a maximum of Rs. 1,50,000 per annum. Any amount invested above Rs. 1,50,000 will not earn any interest and not be eligible for deduction u/s 80C. You don’t need to invest… Continue reading
Head over to your nearest State Bank of India branch, or a branch of any of State Bank’s subsidiaries. You can also open an account in select nationalized banks, and the post office. Fill in the form, attach a photograph, state your PAN Number, and you’re done. Once your formalities… Continue reading
To reiterate, investments into your PPF account are deductible (up to Rs. 1,50,000 p.a.). Interest earned on the investment is completely exempt from tax, so that’s a return of 7.10% p.a. tax free. One of the best features of the PPF is, the account cannot be attached to any claim… Continue reading
11th November, 2011 turned out to be an interesting day for small savings schemes, and for the Public Provident Fund scheme in particular. The earlier maximum investment of Rs. 70,000 per annum was increased to Rs. 1 lakh per annum, therefore making it the same as the maximum allowed Section… Continue reading