Public Provident Fund is a popular savings cum tax saving instrument in India.

Public Provident Fund

Public Provident Fund, popularly known as PPF, is a savings cum tax saving instrument. It also serves as a retirement planning tool for many of those who do not have any structured pension plan covering them. The balances in PPF account cannot be attached by any authority normally.

How to Open Account
Public Provident Fund account can be opened at designated post offices throughout the country and at designated branches of Public Sector Banks throughout the country.

Who can Open Account
The account can be opened by an individual in his own name, on behalf of a minor of whom he is a guardian.

Tabs on Investment
Minimum deposit required in a PPF account is Rs. 500 in a financial year. Maximum deposit limit is Rs. 70,000 in a financial year. Maximum number of deposits is twelve in a financial year.

Lapse in Deposits
If deposits are not made in a PPF account in any financial year, the account will be treated as discontinued. The discontinued account can be activated by payment of the minimum deposit of Rs.500/- with default fee of Rs.50/- for each defaulted year.

Premature Closure or Withdrawl
Account Transfer
The Account is transferable from one post Office / bank to another and from post Office to bank or from a bank to a post office.

Tax Benefits