UCO Bank : Public Provident Fund Scheme

Organization : UCO Bank
Facility :Public Provident Fund Scheme

Home Page :https://www.ucobank.com/
For more Details here :https://www.ucobank.com/english/home.aspx

Public Provident Fund Scheme

Who can open :
** Any individual may subscribe on his/her own name to the Public Provident Fund and no joint account is allowed.

Related : UCO Bank RuPay Card Registration : www.statusin.in/18363.html

** An individual can open only one account in his name. He/she can open another account on behalf of a minor of whom he/she is the guardian, the other guardian cannot open another account of the same minor child. Minor attaining majority will operate the A/c himself

** To open a PPF a/c the subscriber need not have any deposit a/c in the branch.
** Non-resident Indians, HUF are not eligible to open PPF a/c. If a resident who subsequently becomes NRI during the currency of maturity period, may continue to subscribe to the fund till its maturity on a non-repatriation basis.

** PPF a/c will not be opened or extended in the name of HUF or an Association of Persons w.e.f. 13-05-2005.

Subscription :
** Minimum Rs.500/- and Maximum Rs.1 lac (in multiple of Rs.5) in a financial year.
** The subscription which shall be in multiple of Rs.5/- may, for any year, be paid into the account in one lump sum or installments not exceeding 12 in a year.
** A minimum of Rs.500/- should be deposited in each financial year otherwise the account will be treated as discontinued resulting in loss of benefits.

Interest :
Yearly interest rate notified by the central government in the official Gazette from time to time. Presently it is 8.80% (w.e.f. 01.04.2012).

Tax Benefits :
** Subscription of PPF upto Rs.1,00,000/- qualify for tax rebate under Section 80-C of Income Tax Act, 1961.
** Interest accrued on PPF account and withdrawals thereof are fully exempt from Income tax Act under Sec. 10(11) of the I.T.Act.
** Amount in PPF account is also exempt from Wealth Tax.

Closure of Account :
The account can be closed after expiry of 15 years from the close of the financial year in which the initial subscription was made.

Extension of PPF Account :
** PPF A/c can be extended for one or more blocks of 5 years by giving option within one year from the date of maturity of the account.
** During extended period, partial withdrawals not exceeding one every year are permitted, subject to a maximum of 60% of the amount standing to his /her credit at the beginning of the period.
** This limit of withdrawal will apply on every extension of block period.

Loan :
** A subscriber can avail loan in the 3rd year of opening the account and amount up to 25% of the balance at the end of second year preceding the year in which the loan is applied for.
** No loan can be taken after the end of 5th year from the end of the year in which the initial subscription was made.