The Public Provident Fund (PPF) is probably the most popular of all the tax-saving schemes. The PPF account may be opened at any branch of the State Bank of India (SBI) and its subsidiaries, a few branches of the other nationalised banks, and all head post offices.
Salient Features of PPF :
- The Public Provident Fund Scheme is a statutory scheme of the Central Government of India.
- The Scheme is for 15 years.
- The rate of interest is 8% compounded annually.
- The minimum deposit is 500/- and maximum is Rs. 70,000/- in a financial year.
One deposit with a minimum amount of Rs.500/- is mandatory in each financial year. - The deposit can be in lumpsum or in convenient installments, not more than 12 Installments in a year or two installments in a month subject to total deposit of Rs.70,000/-.
- It is not necessary to make a deposit in every month of the year. The amount of deposit can be varied to suit the convenience of the account holders.
- Account can be opened by an individual or a minor through the guardian.
Joint account is not permissible. - No age is prescribed for opening a PPF account.
- The PPF scheme is operated through Post Office and Nationalized banks.
- PPF account can be opened either in Post Office or in a Bank.
- Deposits in PPF qualify for rebate under section 80-C of Income Tax Act.
- The interest on deposits is totally tax free.
- Deposits are exempt from wealth tax.
- The balance amount in PPF in PPF account is not subject to attachment under any order or decree of court in respect of any debt or liability.
