INSUBCONTINENT EXCLUSIVE:
PPF enjoys an "exempt, exempt, exempt" (EEE) tax status.
Public Provident Fund (PPF) account, a
retirement planning-focused instrument, is considered among the most sought after investment products by financial experts
It is offered by various institutions including India Post and commercial lenders such as State Bank of India (SBI)
The scheme was introduced by the National Savings Organization in 1968 to mobilize small savings
PPF enjoys an "exempt, exempt, exempt" (EEE) tax status
This means that the returns, the maturity amount and the interest income are exempt from income tax
For the July-September quarter, investment in a PPF account will fetch interest at the rate of 7.9 per cent per annum
Here are 10 things to know you need to know before opening PPF account with SBI:Eligibility: A Public Provident Fund (PPF)
account can be opened by resident Indian individuals and individuals on behalf of minors, according to SBI's website
A PPF account can also be opened either by the mother or father on behalf of their minor son or daughter; however the mother and father both
cannot open PPF accounts on behalf of the same minor
Grandparents cannot open a PPF account on behalf of minor grand-child; however, in case of death of both the father and mother,
grand-parents can open a PPF account as guardians of the grandchild, according to SBI's website- sbi.co.in.How to apply:To apply for the
PPF Provident Fund (PPF) scheme, an individual is required to fill the PPF account opening form and submit it at any SBI branch with
The PPF account can be opened in one of the branches
Subscribers must mention the name of branch where he/she wishes his/her PPF account to be opened
The documents required to open PPF accounts are - nomination form, passport size photograph, copy of PAN (Permanent Account Number) card, ID
proof and residence proof as per bank's KYC norms.Minimum/maximum contributions: A minimum of Rs 500 subject to a maximum of Rs 1,50,000
completion of 15 years from the end of the year in which the account was opened.How to extend tenure of PPF investment beyond maturity
within one year from the date of maturity.Income tax benefits: Under SBI's PPF account, income tax benefits are available under Section 88
Interest income is totally exempt from Income Tax.Premature withdrawal: In case of PPF account, customer can make one withdrawal every year,
from the seventh financial year, of an amount that does not exceed 50 per cent of the balance of the customer credit at the end of the
fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower.What happens in
customer doesn't deposit the minimum deposit amount of Rs 500 on the completion of the financial year.Loan facility on my Public Provident
financial year up to end of fifth financial year, as mentioned on SBI's website.How to transfer existing PPF account maintained with
another bank/post office to SBI: To transfer the existing PPF accounts to SBI, the subscriber is required to approach the bank or the post
office where his/her current PPF account is held and make an application for transfer of PPF account to the desired SBI's branch
Once the application is processed, the existing bank/post office arranges to send the original documents such as a certified copy of the
account, the account opening application, nomination form, specimen signature etc
to SBI branch address provided by the customer, along with a cheque/DD for the outstanding balance in the PPF account.Get Breaking news,
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