What are the rules for PPF account?
What are the rules for PPF account?
PPF account has maturity period 0f 15 years, however, for information to the PPF account holders, PPF withdrawal rules allow an investor to fish out money before the maturity period. It also allows PPF account holders to take loan against PPF at mere 1 per cent interest rate.
When can we withdraw money from PPF?
15 years
PPF Withdrawal Rules: How to Withdraw Your Partial & Complete PPF
| Type of Withdrawal | Time Period | How much? |
|---|---|---|
| On Maturity | After 15 years | Full Amount |
| Partial Withdrawal | After 6 years | 50% of the balance |
| Premature Closure | After 5 years | Full Amount |
How much we can withdraw from PPF after 7 years?
The amount which you can withdraw from your PPF account shall be restricted to higher of fifty per cent of the balance standing at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year.
Where can I open a public provident fund account?
The PPF account can be opened at either of the following : What Documents are Usually Asked by the Bank / Post Office for Opening Account : Public Provident Fund Rules / PPF Guidelines / Special Features of PPF Account : It is a 15 years scheme.
What was the purpose of the public provident fund?
What is PPF? Public Provident Fund (PPF) is a scheme of the Central Government, framed under the PPF Act of 1968. Briefly, the PPF is a government backed, long term small savings scheme which was initially started by the Government because it wanted to provide retirement security to self employed individuals and workers in the unorganized sector.
What are the rules for an employee provident fund?
Employee Provident Fund Rules #1 – Contribution made by Employer and Employee: Every employee under the Employee Provident Fund scheme has to mandatorily contribute 12% of their Basic Pay plus DA and Retaining Allowance (if any). Employer would also contribute a similar amount. Let’s Get Good With Money.
Is the public provident fund exempt from tax?
The Public Provident Fundscheme is one of the most popular investments in India today. And that is no surprise since it provides tax deductions, your maturity (interest) is exempt from tax, and it is a perfectly safe instrument which cannot be attached in case of debt or liability. This is money that will be yours forever.