The deposit made under these rules shall bear interest at the rate of eight percent per annum from the date of deposit.
1.A PPF account can be opened by an individual in his own name or on behalf of a minor of whom he is the guardian or a body of individuals consisting only husband and wife governed by the system of community of property in force in the union Territories of Dadar and Nagar Haveli,Goa, Daman and Diu .
2. Only one PPF account can be opened by an individual on his own behalf . However ,an additional account can be opened on behalf of a minor of whom he is the guardian or a Hindu undivided family by the Karta of which he is a member or on behalf of an association of persons or a body of individuals as refer to above.
3. A person having a GPF account can open a PPF account.
4. The account can be opened in the Head Post Office or in the branches of SBI or its subsidiaries or in the Nationalised Banks. The account can be transferred at the request of the subscriber from one Post office to another ,including Bank to Post Office and vice-versa.
5. Minimum Amount Rs.500/- effective from 15.11.2002 in a year ( year means financial year i.e. from 1st April to 31st March) Maximum Amount – in a year in Rs.70,000/-w.e.f. 15.11.2002.If contributions in excess of Rs.70,000/- are made during a year – Excess amount will be treated as “Irregular subscription and will neither carry any interest nor this excess amount will be eligible for rebate under section 88 of I.T. Act. This excess amount will be refunded without any interest.
6. PPF account can be revived paying a fee of Rs.10 (Rs.50 effective from 15.11.2002) alongwith arrear of minimum subscription for each year of default before maturity .The default Fee must be credited to Govt Account under the Sub Head “0049”. (Not in Bank’s Commission Account).
7. Where a deposit is made by means of an outstation cheque or instrument, collection charges at the prescribed rate shall be payable alongwith the deposit and the date of realization of the amount shall be the date of deposit.
9. Withdrawal can be made any time after expiry of 5 years from the end of the year in which the initial subscription was made.The amount of withdrawal should not exceed 50% of the balance at the end of 4th year immediately preceding the year in which the amount is withdrawn or at the end of the preceding year whichever is lower. Only one withdrawal is permisable in a year.
10. The first loan can be taken in the third financial year from the financial year in which the account was opened upto 25% of the amount at credit at the end of the first financial year. Subsequent loan can be taken when the earlier loan with interest has been fully repaid.
12. A subscriber may nominate one or more person to receive the amount standing to his credit in the event of his death . No nomination can, however, be made in respect of an account opened on behalf of a minor (w.e.f.25.5.1994).Nomination may also be made in respect of an account on behalf of a Hindu undivided family(w.e.f.25.5.1994).Nomination may be cancelled or varied by a fresh nomination.
13. In the event of the death of the subscriber ,the amount standing to his credit can be repaid to his nominee or legal heir, as the case may be, even before the expiry of fifteen years. Legal heirs can claim the amount upto Rs.one lakh without production of the succession certificate after observing certain formalities.
14. Subscription to the PPF qualify for deduction from the taxable income of the subscriber for income tax purpose within the limits laid down under section 80-C of the income tax act.
15.The interest credited to the funds is not counted as income for the purpose of income tax. The amount including the interest standing in the credit of the subscriber in the fund is also totally exempt from the wealth tax.
16. PPF account are not transferable from one person to another. In case of death of the subscriber, the nominee cannot continue the account of the deceased subscriber.
17. A female subscriber can change her name in the PPF account in the event of her marriage.