Monday, 30 January 2017

PUBLIC PROVIDENT FUND (PPF) 1968

PUBLIC PROVIDENT FUND (PPF) 1968



  • Interest rate of 8.1% per annum w.e.f. 01-04-2016 (1st Quarter-01.04.2016 to 30.06.2016)
  • Minimum deposit is 500/- per annum. Maximum deposit is Rs. 1,50,000/- per annum
  • The scheme is for 15 years.
  • Investment up to Rs 1, 50,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.
  • Interest is completely tax-free.
  • Deposits can be made in lump sum or in 12 installments.
  • One deposit with a minimum amount of Rs 500/- is mandatory in each financial year.
  • Withdrawal is permissible from 6th financial year.
  • Loan facility available from 3rd financial year up to 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.
  • Free from court attachment.
  • Non-Resident Indians (NRIs) not eligible.
  • An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.
  • Ideal investment option for both salaried as well as self-employed classes.




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