If you are a permanent resident of India then you can apply for a PPF account which is available at your nearest post office branch or you can even open a PPF account in India. There are a lot of benefits that are available to the people who are applying for a PPF account. You can check out the details related to the PPF Account Opening Form 2024 from the article provided here and we will also share with you all the details related to the interest rate that you will be given in this PPF account currently presented by the Indian government from the article provided below. We will also share with you all the application forms and the procedure that you need to follow in order to fill out the application form.
About PPF Account Opening Form 2024
You can open a PPF account in your nearest post office or your nationalize bank including the Central Bank of India and other banks which are privately owned by the organization but you will have to visit the official Bank branch and then you can ask about the availability of a PPF account function in order to fill out the application form and get the details related to the benefits available to all the people. You will have to submit documents in order to successfully open a PPF Account Opening Form and there are a lot of features which are included in the PPF account which you can check out if you are eligible for the benefit. The applicants can be adults and even minors if their parents are opening their accounts.
Also Check: Kisan Vikas Patra
Features Of PPF Account Opening Form
The applicant must follow the following features to open account using PPF Account Opening Form:-
- People must deposit a minimum of Rs. 500 per year in their PPF account. The maximum limit is Rs. 1,50,000 per year. Any Indian Person can deposit money in a lump sum or in installments.
- The maximum limit of Rs. 1.50 lakh shall be inclusive of the deposits made in his/her own account and in the account open on behalf of a minor.
- The amount can deposit in any number of installments in an FY multiple of Rs. 50 and a maximum of up to Rs. 1.50 lakh.
- The account can open by cash/cheque and in the case of a cheque, the date of realization of the cheque in Govt. account shall be the date of opening of the account/subsequent deposit in the account.
- A single adult by a resident Indian or a guardian on behalf of a minor/ person of unsound mind can open this account.
- Only one account can open all across the country either in the Post Office or any Bank.
- Subsequently, Joint account opening is not permitted in the Public Provident Fund Scheme.
- If in any financial year, a minimum deposit of Rs. 500/- is not done, the said PPF account shall become discontinued.
- A loan/withdrawal facility is not available on discontinued accounts.
- The discontinued account can revive by the depositor before the maturity of the account by depositing a minimum subscription (i.e. Rs. 500) + Rs. 50 s default fee for each defaulted year.
- The total deposit in a year shall be inclusive of deposits made in respect of years of default of previous financial years.
- Moreover, the nomination facility is available at the time of opening the account and remains applicable even after the account is open. If a person does not specify his nominee and the account holder dies then the entire amount will get pass to the legal heirs. In addition to this, the account also has a transfer facility i.e it can be transfer from 1 post office to another.
- Subscribers can also open another account in the name of a minor but the maximum investment limit (adding balance in all accounts) needs to be follow.
- People also receive tax benefits through investment in the Public Provident Fund. All the deposits qualify for income deduction under section 80C of the IT Act. Moreover, the interest amount is non-taxable (free from tax).
- In addition to this, Post Office / Banks also provide loan facilities to PPF Account holders.
Deposits and Account Balance
The applicant will have to follow the details related to the account balanced and the deposits from the pointers given below:-
- The person will have to fill out Form A along with the subscription amount.
- On Receiving the application form, the Accounts Officer will open the account and issue a new passbook.
- This PPF Passbook will consist of information on all PPF deposits, PPF loans, and PPF withdrawals. As per the Public Provident Fund Act of 1968, the minimum PPF account balance to be deposited in the account is Rs. 500 per year.
- Moreover, the central government has increased the maximum PPF account balance limit from 1 lakh to 1.5 lakh in FY 2014.
- The minimum deposit Rs. 500 in a Financial Year and the Maximum deposit is Rs. 1.50 lakh in an FY
- Maximum limit of Rs. 1.50 lakh shall be inclusive of the deposits made in his/her own account and in the account opened on behalf of a minor.
- The amount can be deposited in any number of installments in an FY in multiple of Rs. 50 and a maximum of up to Rs. 1.50 lakh.
- The account can be opened by cash/cheque and in the case of the cheque the date of realization of the cheque in Govt. the account shall be the date of opening of the account/subsequent deposit in the account.
- Deposits qualify for deduction under section 80C of the Income Tax Act.
- People can deposit this amount in lump sum or in 12 monthly installments.
Discontinuation of PPF Account
If you want to discontinue your PPF account and you will have to follow the simple procedure given below on the following rules and regulations;-
- If in any financial year, a minimum deposit of Rs. 500/- is not made, the said PPF account shall become discontinued.
- Loan/withdrawal facility is not available on discontinued accounts.
- Discontinue account can revive by the depositor before the maturity of the account by depositing a minimum subscription (i.e. Rs. 500) + Rs. 50 s default fee for each defaulted year.
- The total deposit in a year shall be inclusive of deposits made in respect of years of default of previous financial years.
PPF Interest Rate
The applicant will have to follow the following interest rate in order to successfully apply for this PPF account:-
- The current PPF Interest Rate is 7.1% per annum compound yearly.
- Interest shall be applicable as notified by the Ministry of Finance on a quarterly basis.
- The interest shall calculate for the calendar month on the lowest balance in the account between the close of the fifth day and the end of the month.
- Interest shall credit to the account at the end of each Financial year.
- Interest shall credit to the account at the end of each FY where the account stands at the end of FY. (i.e. in case of transfer of account from Bank to PO or vice versa).
- Interest earned is tax-free under Income Tax Act.
Loan to PPF Account Holders
The applicant will be able to take the loan according to their PPF account from the rules and regulations given below:-
- The loan can be taken after the expiry of one year from the end of the FY in which the initial subscription was made.(i.e. A/c open during 2010-11, the loan can be taken in 2012-13).
- The loan can be taken before the expiry of five years from the end of the year in which the initial subscription was made.
- The loan can be taken up to 25% of the balance to his credit at the end of the second year immediately preceding the year in which loan is applied. (i.e. if the loan was taken during 2012-13, 25% of the balance credit on 31.03.2011)
- Only one loan can take in a Financial Year.
- The second loan shall not provide till the first loan was not repaid.
- If the loan is repaid within 36 months of the loan being taken, the loan interest rate of 1% per annum shall be applicable.
- If the loan is repaid after 36 months of the loan taken loan interest rate of 6% per annum shall be applicable from the date of the loan
PPF Withdrawal
If you want to withdraw your PPF account then you can check out the rules and regulations related to the same from the pointers given below:-
- A subscriber can take 1 withdrawal during a financial year after five years excluding the year of account opening. (if accounts open during 2010-11 the withdrawal can be taken during or after 2016-17).
- The amount of withdrawal can be taken up to 50% of the balance at the credit at the end of the 4th preceding year or at the end of the preceding year, whichever is lower. (i.e. withdrawal can be taken in 2016-17, up to 50% of balance as on 31.03.2013 or 31.03.2016 whichever is lower).
PPF Account Maturity Period
There is a maturity period available in your PPF account and you can check out the details related to the same from the pointers given below:-
- Account will mature after 15 F.Y. years excluding FY of account opening. On maturity depositor has the following options:-
- Can take maturity payment by submitting account closure form along with passbook at concerned Post Office.
- Can retain maturity value in his / her account further without deposit, the PPF interest rate will apply and payment can be taken any time or can be withdrawn in each FY.
- Can extend his / her account for a further block of 5 years and so on (within one year of maturity) by submitting a prescribed extension form at the concerned Post Office.
- Discontinue account cannot extend
- In extended accounts with deposits, 1 withdrawal can be taken in each FY subject to a maximum limit of 60% of balance credit at the time of maturity in the block of 5 years.
Account Premature Closure
If you are prematurely closing your PPF account then you will be provided with the following benefits:-
- Premature closure shall allow after 5 years from the end of the year in which the account was open subject to the following conditions:-
- In case of life-threatening disease of an account holder, spouse, or dependent children.
- In the case of higher education of account holders or dependent children.
- In case of a change of resident status of the account holder (i.e. became NRI).
- At the time of premature closure, 1% interest shall be deducted from the date of account opening/date of extension as the case may be. The account can close on the above conditions by submitting a prescribed form along with a passbook at the concerned Post Office.
Death Benefits
The applicant will be provided the following benefits if they have a currently functioning PPF account:-
- In case of the death of the account holder, the account shall close and the nominee or legal heir(s) shall not allow continuing deposits in the account. At the time of closure due to death PPF rate of interest shall be paid till the end of the preceding month in which the account is closed.
Tax Benefits
The applicant will be provided the following tax benefits if they are opening the PPF account:-
- PPF Tax Benefits on Principal Amount – PPF’s principal amount will get a deduction from Gross Total Income under 80C of the IT Act. However, this amount is limited to Rs. 1.5 lakh per annum. For the rest amount, subscribers will have to pay tax as per their income tax slab.
- PPF Tax Benefit on Interest Earned – Interest earned is tax-free and govt. cannot levy any income tax on this amount.
Eligibility Criteria
The applicant must follow the following eligibility criteria to successfully open the account and invest:-
- A single adult by a resident Indian.
- A guardian on behalf of a minor/ person of unsound mind.
- Only one account can be open all across the country either in the Post Office or any Bank.
Also Check: SBI Utsav Fixed Deposit Scheme
PPF Account Opening Form 2024 Application Process
To apply for this scheme you will have to follow the simple procedure given below:-
- You will first have to visit your nearest post office and then you will have to ask for the PPF Account application form for the post office account.
- You have to fill out the application form and submit the application form to the concerned authorities by attaching all of the documents mentioned above.
- The applicant will have to submit the original documents to go through the verification procedure.
- You have to collect the signatures of your witnesses and the beneficiaries and then you will be eligible to get the details related to this prestigious scheme presented by the post office department.