PPF full form? Public Provident Fund.

The PPF is a government-backed savings scheme in India that allows individuals to save money for retirement or other long-term goals. the full form of PPF is Public Provident Fund.

Contributions to the PPF are eligible for tax deductions under Section 80C of the Indian Income Tax Act. The PPF has a 15-year maturity period, and the account can be extended in blocks of 5 years after the original maturity period. The account can also be transferred from one bank to another.

What is PPF full form and what are its benefits

What is PPF? the PPF full form is Public Provident Fund. The Public Provident Fund (PPF) is a government-backed savings scheme in India that allows individuals to save money for retirement or other long-term goals.

The scheme was introduced in 1968 by the Indian government, and contributions to the PPF are eligible for tax deductions under Section 80C of the Indian Income Tax Act.

The PPF has a 15-year maturity period, and the account can be extended in blocks of 5 years after the original maturity period. The account can also be transferred from one bank to another.

The PPF offers a number of benefits to its investors, including:

• A fixed interest rate: The PPF offers a fixed interest rate, which is set at 8.7 percent per annum in 2018-19.

• Tax benefits: PPF contributions are deductible from the taxable income of an individual under Section 80C of the Indian Income Tax Act, and the interest accrued on PPF investments is also tax-free.

Here’s a look at how much money you can earn through PPF accounts based on various factors such as current interest rate, deposit amount, and tenure:

Interest Rate – The annual interest rate for Public Provident Fund (PPF) account for the financial year 2017-18 has been fixed at 8.1%. For deposits made from April to July, rates were 8.2%

Deposit Amount – Here we have listed the maximum interest you can earn at different deposit amounts:

Financial Year – The maximum interest you can earn in a financial year with different deposit amounts and tenures is listed below:

Tenure – The table below depicts the maximum interest you can earn for 10 years, 15 years, 20 years & 25 years tenure.

How to open a PPF account

If you’re interested in opening a PPF account, here’s what you need to do:

1. Go to the website of the National Savings Institute (NSI), which is the government agency that administers the PPF scheme.

2. On the NSI website, select the “Individuals” tab and then click on the “Public Provident Fund” link.

3. This will take you to the official PPF website, where you can learn more about the scheme and also apply for a PPF account online.

4. You can also visit your nearest bank branch and apply for a PPF account there.

5. You’ll need to submit the necessary documents – proof of identity, address and bank account details for Aadhaar-linked savings accounts – to open a PPF account at your nearest bank branch or online on the NSI website.

Documents needed to open a PPF account:

• A copy of your PAN card

• Proof of current residential address (a recent utility bill like telephone, electricity, water connection; latest bank statement with photograph)

• KYC Documents required by your Bank (i.e., Voter ID card/Passport/Aadhaar Card/ Driving license / Job card issued by NREGA duly signed by an officer of the state government).

How to deposit money in a PPF account

If you’re interested in depositing money in your Public Provident Fund (PPF) account, here’s what you need to do:

1. Go to the website of the National Savings Institute (NSI), which is the government agency that administers the PPF scheme.

2. On the NSI website, select the “Individuals” tab and then click on the “Public Provident Fund” link.

3. This will take you to the official PPF website, where you can learn more about the scheme and also deposit money into an existing PPF account online.

4. You can also visit your nearest bank branch and deposit money into a PPF account there.

5. You’ll need the account number to make a PPF deposit.

How to withdraw money from a PPF account

If you’re interested in withdrawing money from your Public Provident Fund (PPF) account, here’s what you need to do:

1. Go to the website of the National Savings Institute (NSI), which is the government agency that administers the PPF scheme.

2. On the NSI website, select the “Individuals” tab and then click on the “Public Provident Fund” link.

3. This will take you to the official PPF website, where you can learn more about the scheme and also withdraw money from an existing PPF account online.

4. You can also visit your nearest bank branch and withdraw money from a PPF account there.

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What are the tax benefits of investing in a PPF account

The tax benefits of investing in a PPF account are as follows:

1. Contributions to a PPF account are exempt from income tax.

2. The interest earned on deposits in a PPF account is exempt from income tax.

3. The maturity proceeds or withdrawal amount from a PPF account is exempt from income tax.

4. Any loans taken against the PPF account are also exempt from income tax.

5. Deposit amount or withdrawal is taxable if it exceeds ₹1,50,000 in a year, but there’s no TDS on this.

6. If you’re 60 years old or above and wish to withdraw your entire PPF balance after five years of opening the account, you’re allowed to do so without paying any penalty (like other schemes). However, if you don’t meet either of these conditions but still withdraw money before completing five years, interest payable at half the rate applicable for new deposits will be deducted when computing taxable income under the head “Salaries”.

7. If not claimed otherwise, the PPF account will be closed after the completion of 15 years from the date of opening the account.

8. Even if you have multiple PPF accounts, all your deposits and interest earned from those investments will be clubbed together for computing tax on the withdrawal.

9. If a member fails to open an account within a year of becoming eligible for a PPF account, he/she is only allowed to invest before December 31 of that year or before the end of 5 years from the date he/she became eligible, whichever is later.

What happens when the term of the PPF account expires

When the term of the PPF account expires, the account holder has to options:

1. Extend the account by submitting an application to the same bank or post office where the original account was opened.

2. Transfer the maturity proceeds to any other bank or post office where an account has been operational for at least 2 years.

3. Withdraw the entire amount.

4. Partial withdrawal of the amount is also allowed, but only up to 60% of the total corpus.

5. If the PPF account is not extended or transferred, then the entire amount will be automatically withdrawn and taxed as income under the head “Salaries”.

Things to keep in mind while investing in a PPF account

When investing in a PPF account, it is important to keep the following in mind:

1. The account must be opened in the name of the individual, and not in the name of a company or trust.

2. The minimum investment amount is Rs.500, and subsequent investments must be in multiples of Rs.500.

3. The maximum investment amount is Rs.1,50,000 per financial year.

4. The account can be opened with any bank that offers the PPF scheme.

5. The account matures after 15 years, and the funds can be withdrawn only after the account holder turns 60 years old.

6. The funds invested in a PPF are eligible for tax rebate under Section 80C of the Income Tax Act, 1961.

7. An account holder cannot invest in more than one PPF account per year.

8. Post-maturity withdrawals are not allowed other than in cases of financial emergency or illness (see exception below).

9. The interest rate and the annual contribution limit is decided by the Central Government and can be changed at their discretion each year. Interest rates for 2015-16 stood at 8.70%.

The maturity period of a PPF account is 15 years

The maturity period of a PPF account is 15 years, after which the account holder can withdraw the entire balance without any penalty. The account can also be extended for a further five years, after the initial maturity period.

A PPF account is a type of investment that offers tax-free interest on deposits, which can be withdrawn at any time without being subject to taxes. This makes it an attractive option for individuals looking for safe investments with high rates of return. However, there are some limitations imposed by the government when investing in this plan.

For instance, only one deposit can be made per year, and withdrawals before maturity are not allowed except in cases where the individual falls under certain circumstances such as illness or financial emergency.

So if you’re interested in opening up your own PPF account but don’t know how to go about doing so, contact us today! We’ll help get you started right away with our professional assistance and free consultation services.

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