What is a PPF account? Full information of PPF Account

PPF Account Kya Hota Hai – Often you may have heard of a PPF account. Many times you must have had some questions about the PPF account. When it comes to tax saving. So every person has a PPF account in his mind. But not many people know about this account. And due to less information, people don’t invest their money in it. But actually PPF account is the best and tax-free plan to save. Today we will give you the answer to all your questions through this article. Which will bring the PPF account to your mind.

What is a PPF account?

The full name of PPF account is Public Provident Fund. Also known as public provident fund account. It is a savings or deposit scheme run by the government. Which was started by the Ministry of Finance in 1968. The main objective of the government in launching this scheme is to increase the spirit of savings among the people. Along with this, the government has also provided the benefit of tax saving to the citizens along with this scheme. PPF Account Account is a completely tax-free savings scheme That is, the amount deposited in this account and the interest received thereon does not attract any tax.

It’s quite a good plan to save tax and save for the future. A PPF account can be opened by any citizen in Any Post Office or branches of a nationalized bank in India such as SBI, PNB, ICICI.

PPF account is a long-term savings plan. Under which any citizen can deposit his amount. An interest of 8.7 per cent was earlier provided in the PPF account. ( PPF Account Kya Hota Hai ?) But by revising it, an interest of 8.1 per cent is now provided at the present time.

How many PPF accounts can you open?

As per the finance ministry rules, no person can invest in more than one PPF account. Therefore, a citizen has been allowed to open a single PPF account. If a person has opened more than one PPF account. So he will not be provided any kind of interest in the second account. And that account will be activated anytime.

Also, no person can open a PPF account under a joint account.

What is the maximum age limit for opening a PPF account?

No maximum age limit has been prescribed for opening a PPF account.

Where to open a PPF account?

You can open PPF accounts at any nationalised bank like SBI, Union Bank, PNB, Bank of India etc. Along with this, some regional private banks like ICICI Axis Bank etc. can open PPF accounts. Along with this, you can also transfer your PPF account from one bank to another.

How much can you invest in an PPF account in 1 year?

Any citizen can invest at least ₹500 and up to a maximum of Rs 1.5 lakh in a financial year. With this, a maximum PPF can be deposited 12 times in the account in 1 year. and the amount deposited every time should be above ₹5.

Can you open a children’s PPF account?

You can also open ppf accounts of your essential children. But the point to note here is. If you are the Guardian in your essential children’s account you are the only one. So you can’t deposit an amount above ₹150000 per annum in your and your child’s account. And if you deposit in some way. So no interest will be provided on the additional amount.

When is a PPF account matured?

The year in which a citizen opens his PPF account. After 15 years from the end of that year, his PPF matures into the account. You can understand it this way. If you have opened your PPF account in June 2018. So your PPF account will mature on March 31, 2034.

What to do after a PPF account is matured?

When your PPF account is full i.e. you have matured. There are three options.

  • You can close your account and withdraw the entire amount.
  • Can extend your PPF account for a period of 5 years without any further contribution.
  • You can extend the PPF account for 5 years by making further contributions.

Can you take a loan on a PPF account?

If you suddenly need money. And you don’t want to close your PPF account either. You can also get a loan on your PPF account. On a PPF account, you can get a loan from the third year to 6 years. You can’t get a loan after 6 years because you can’t get it. Because in 7 years you can withdraw some money from the PPF account. Now there must be a question in your mind or How much loan can we get on the PPF account Normally, you are provided only 25% loan on ppf account.

What is the tax benefit on depositing money in ppf account?

You are given tax exemption on the money deposited under the PPF account. But you can get tax benefit only at a maximum of Rs 1.5 lakh in a year. It comes under Section 80C of income tax.

At the same time, the interest on PPF account is also tax-free. When you close your account. Or withdraw their money after maturity. Even then you don’t have to pay any kind of tax.

Can you open an NRI PPF account?

As per the rules of PPF account, no NRI can open a PPF account. But before becoming the NRI, those who have opened a PPF account. He can run his account till he is matured.

Documents required to open PPF account:

Do you want to open your PPF account. So for this, you will need some necessary documents, the details of which are as follows.

  • Passport, PAN card, Aadhaar card, driving license/voter ID card any kind of utility bill/ Lease agreement, bank account statement, ration card, signed cheques, etc.
  • Along with this, the photograph of the applicant.
  • written application.
  • Special documents directed by the bank.
  • And if you are below the age of 18 years, the birth certificate.

How to Open an Offline PPF Account?

To open an offline EPF account, you can go to one of your nearest banks or post offices. And from there you can open your PPF account by taking the PPF Account application form and filling it perfectly and attaching a copy of the required documents.

How to Open a PPF Account Online?

If you don’t have the time to go to a bank post office. So you can also open a PPF account using the online facility run by banks.

For this, you have to first go to a bank’s website. So that you have to open an EPF account in the bank. After visiting the official website of the bank, you can apply online after reading the necessary terms and conditions related to the PPF account.

So guys, this is all about PPF Account. If you like this information so share it with your friends. Also, if you have any kind of question, comment in the comment box below. We’ll answer your question soon. Thank you!

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