To profit the advantage of tax exemption then you can put resources into Public Provident Fund (PPF) with India Post.
India Post recently tweeted, “Put resources into Public Provident Fund (PPF) with India Post to profit the advantage of tax exemption.”
Here is all you want to be familiar with Public Provident Fund (PPF):
- Who can open?
A single adult who is an Indian inhabitant, a guardian in the interest of minor/individual of unsound mind, can open PPF account with India Post. Nonetheless, it should be noticed that only one account can be opened all over the nation either in Post Office or any Bank.
- Deposit
Minimum deposit is Rs 500 in a Financial Year and Maximum deposit is Rs 1.50 lakh in a FY. Most extreme constraint of Rs 1.50 lakh will be comprehensive of the deposits made in his/her own account and in the account opened in the interest of minor. Sum can be deposited in quite a few portions in a FY in numerous of Rs 50 and greatest up to Rs 1.50 lakh.
Additionally, account can be opened with cash/check and if there should be an occurrence of check the date of acknowledgment of check in government account will be date of opening of account/resulting account in account. It very well may be noticed that deposits meet all requirements for allowance under segment 80C of Income Tax Act.
- Discontinuation of account
If in any monetary year, minimum deposit of Rs 500 isn’t made, the said PPF account will become suspended. Advance/withdrawal office isn’t accessible on ceased accounts.
Be that as it may, ended account can be resuscitated by the contributor before maturity of the account by deposit least membership (for example Rs 500) + Rs 50 default expense for each defaulted year.
- Interest
Interest will be appropriate as advised by Ministry of Finance on quarterly premise. The premium will be determined for the schedule month on the least balance in the account between the end of the fifth day and the month’s end. Premium acquired is tax exempt under Income Tax Act.
- Withdrawal
A supporter can require 1 withdrawal during a monetary following five years barring year of account opening. Measure of withdrawal can be taken up to half of equilibrium at the credit toward the finish of fourth going before year or toward the finish of going before year, whichever is lower.
- Maturity
Account maturity is after 15 F.Y. years barring FY of account opening. On maturity contributor has the accompanying choices:-
- Can take maturity payment by submitting account conclusion form alongside passbook at concerned Post Office.
- Can hold maturity esteem in his/her record further without store, the PPF interest rate will be material and payment can be taken any time or can take 1 withdrawal in each FY.
- Can expand his/her account for additional square of 5 years, etc (in the span of one years of maturity) by submitting endorsed expansion form at concerned Post Office.
- In expanded account with deposits, 1 withdrawal can be taken in each FY subject to maximum limit 60% of balance credit at the hour of maturity in the square of 5 years.
- Untimely conclusion
Untimely conclusion will be permitted following a long time from the year’s end wherein the account was opened subject to following circumstances.
- If there should arise an occurrence of hazardous sickness of account holder, companion or ward youngsters.
- If there should arise an occurrence of advanced education of account holder or ward youngsters.
- If there should arise an occurrence of progress of inhabitant status of account holder ( for example became NRI).
At the hour of untimely conclusion 1% premium will be deducted from the date of account opening/date of augmentation by and large. Account can be shut on above conditions by submitting recommended form alongside pass book at concerned Post Office.
