Tax Savings – Public Provident Fund (PPF).

The account is a long-term savings institution provided by the central government, entered into force from 1 July 1968. This investment gives us ASSURED RETURNS & PROVIDE OLD AGE INCOME SECURITY for everyone. By investing in a P.P.F account, we can see the power of COMPOUNDING in the long run. This account is the E.E.E. Is under the rule.


WHO CAN – Any person – Resident, over 18 years old, Minor via Guardian.. Eligibility.

Who can – non-resident, H.U.F., foreigner..

Entry age.

No age limit for opening A / C.


Mini – 500 p.a

Max – 1,50,000 P.A

There is no limit to the number of deposits in the account..


7.1% mixed annually..


On completion of 15 years, 15 years, the account can be extended up to 5 years at a time.

Account keeping category.

  1. Personal..
  2. Only one account can be opened for each minor through the parent..


  1. Proof of identity.
  2. Proof of address.
  3. Passport size photos
  4. and an account opening form..

To Open.

The account can be opened in any nationalised bank and post office..

By submitting Form 1 with related documents..

Only one account can be opened in the name of the person, or in the name of the minor to whom he is the guardian.


The account holder can choose to continue even after the end of 15 years. The extension can be taken in a 5-year block or continued without deposit.. can be extended within 1 year of the maturity date of account opening.

50% withdrawal is allowed at any time after the end of the year 5 years..

Evacuation facilities are available once a year.

If the loan taken against P.P.F has to be repaid before the request to withdraw..

Preparation Status.

Premature closure is allowed.

  1. Treatment of a disease dangerous to the life of the holder, spouse or children
  2. For higher education of account Holder / family.
  3. Changes in residential status..


In the event of death of the holder, the account is closed and no candidate will be allowed to continue..

In other cases withdrawals can be made after the end of 15 years.

The account holder can apply for loan against P.P.F account.

The loan can be applied between the 3 – 6th financial year of opening an account with interest @ 1%.

Penal interest of 6% P.A. Will be charged.

The loan can be pay back in instalments or lump sum.


Attractive long-term goals – These accounts serve long-term investment goals.

Deposit period – 15 years.

Lock in duration – 5 years.

Helpful for retirement planning – long tenure, tax benefits, capital protection make it ideal for retirement corpus.

Tax-free units – tax-free interest, withdrawal and tax deduction investment.

Low Risk – There is minimal risk of default..

Easily accessible – A / c can be opened in a nationalized, public or private bank, post office

No attachment – cannot be attached under a court order or claimed by creditors..


A user can hold only one A / C in his name..

If A / C is active / inactive, no interest will be paid..

Tax benefits (1.5 lakh) are allowed if the contribution is made to the spouse or minor child P.P.F A / c

How does a PPF account work, how do you benefit from it?

The PPF account has a lock-in period of 15 years. That is, you cannot withdraw money before 15 years.

Public provident fund i.e. PPF account is an investment option. Investments up to Rs 1.5 lakh in this account are tax-exempt under Section 80C. There is no tax on interest income. The amount received on maturity is also not covered by tax. In view of so many tax benefits, people open PPF account in their bank / post office. With this help people add a lot of money.

The PPF account has a lock-in period of 15 years. That is, you cannot withdraw money before 15 years. On maturity, the investor gets two options: 1. Withdraw money from the account and close the account. 2. Keep the account current in the block of five years.

What is the procedure to keep the account current in the block of five years?

In this case, you need to give written information to the bank / post office in a prescribed form within one year of the account maturing. You can keep the account running with the deposit amount without any new contribution.

The other option is that you keep investing and take advantage of tax deduction on such deposits. After completion of a block of five years after maturity, the account can be kept operational for another five years. You can run this sequence as long as you want. As long as the account is not closed, interest income will continue to accrue from it.

Keep in mind that a person’s PPF account cannot be seized to collect the debt.

The court also cannot ask the PPF account amount to pay the debt. Partial payment is possible during the first 15 years of account from 7th year with some conditions.


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