INSUBCONTINENT EXCLUSIVE:
Under SBI's PPF account, income tax benefits are available under Section 88 of Income Tax Act.Public Provident Fund or PPF account,
offered by various institutions including commercial lenders such as State Bank of India (SBI), is a retirement planning-focused instrument
A PPF account provides an investment avenue with decent returns coupled with income tax benefits, according to SBI's website - sbi.co.in
Individuals in their own name as well as on behalf of a minor can open the PPF account at any branch, mentioned SBI
As per extant instructions, opening of PPF accounts in the name of Hindu Undivided Family is not permitted
annum can be deposited in a PPF account
The subscriber should not deposit more than Rs 1,50,000 per annum as the excess amount neither earns any interest nor is eligible for rebate
The amount can be deposited in lump sum or in a maximum of 12 installments per year, according to SBI.Interest rateInterest rate is
determined by central government on quarterly basis
At present it is 8.0 per cent per annum
Interest is calculated on the minimum balance (in PPF account) between fifth day and end of the month and is paid on March 31 every year,
mentioned SBI.Maturity periodThe original duration of the scheme is 15 years
Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.Income tax benefitsUnder SBI's PPF
account, income tax benefits are available under Section 88 of Income Tax Act
Interest income is totally exempt from Income Tax
Amount outstanding to the credit is fully exempted from Wealth Tax also, according to SBI.Premature paymentPremature payment is allowed only
after the account completes five years of operation under certain conditions
This is also applicable to account held in the name of minors, said SBI.
