PPF Account Essential Information
You must have heard the name of PPF account in the tax saving exercise. Perhaps people have told you that this is a good saving scheme. But due to less knowledge and trouble of PPF account, you may have taken any non-essential insurance policy.
What is PPF?
PPF means Public Provident Fund; There is a savings scheme provided by the Government of India to its citizens. The government kept PPF free from all forms of tax for more and more people to adopt this scheme. Not only this, tax exemption was also given on PPF deposits under section 80C. This scheme is very popular at the moment. People adopt it due to tax saving and good interest rate.
Eligibility (Any Citizen Of The Country)
The best thing about PPF is that it can be opened by any citizen of the country. Whether you are serviceman, businessman or farmer, you can open your account in it. There is no age limit. You can also open PPF Account for your child or minor acquaintance.
But, keep in mind that you can only open a PPF account in your name. You can never open another account in your name during your lifetime. If ever another PPF Account was found in your name, then another account will be deactivated immediately. There will also be no interest on the deposit amount in that account.
NRIs Cannot Open PPF Account
NRI means non-resident Indian does not have the facility to open PPF account. But, if you had opened a PPF account while being a citizen of India, then you can continue it till the completion of its period (15 years).
According to the new PPF rules for NRIs, you can immediately withdraw money from this account as soon as the account completes 15 years. But if you do not withdraw money, you will get interest at the rate of saving account.
Minimum And Maximum Investment (Rs. 500 to Rs. 1.5 Lakhs per Year)
You can invest a minimum of Rs 500 in PPF or a maximum of Rs 1.5 lakh, during a financial year. Even if PPF is being opened in the name of a child or a minor citizen, more than one and a half lakh rupees cannot be invested in the joint account of that minor person and his guardian. You can deposit money in your PPF account at least 12 times in a year. You can also deposit in PPF account twice a month, but should not be more than 12 times in a year.