IDBI Bank : Public Provident Fund Scheme
Organization : IDBI Bank Ltd
Facility : Public Provident Fund Scheme
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Home Page :https://www.idbibank.in/index.aspx
Download Forms here :https://www.idbibank.in/
Public Provident Fund (PPF) :
The Government of India has authorised IDBI Bank to receive subscriptions to PPF Accounts through its designated 675 branches across India.
Salient Features of the Scheme :
Eligibilty :
** Individuals in their own name as well as on behalf of a minors can open the account at any designated Branch.
** As per extant rules, opening of PPF accounts in the name of NRIs & Hindu Undivided Family is not permitted.
Transfer Of Account :
The account can be transferred from other banks or Post Offices and vice versa upon request by the subscriber, free of charges.
Subscription Limits :
Minimum of Rs.500/- and a maximum of Rs.1,50,000/- per financial year may be deposited. Any amount in excess of Rs.1,50,000/- in a financial year shall neither earn any interest nor will be eligible for rebate under the Income Tax Act. The amount can be deposited in lump sum or in a maximum of 12 instalments per year.
Maturity Period :
15 years. Extendable for 1 or more blocks of 5 years each after maturity.
Rate Of Interest :
Governed by the Government of India. Presently 8.70% per annum.
Tax Benefits :
Income Tax benefits are available under Sec 88 of the IT Act. Interest income is also totally exempt from Income Tax. Amount outstanding to the credit is fully exempt from Wealth Tax.
Loans :
A depositor can avail loan against balance in the PPF account in the third financial year. Rate of Interest for Loan will be 2% above the rate of interest on PPF.
Partial Withdrawal :
Partial withdrawal is allowed once every year but after the expiry of 5 years from the end of financial year of the initial deposit in the PPF account.
PPF Scheme :
Public Provident Fund (PPF) scheme is a long term investment scheme backed by the Government of India, framed under the Public Provident Fund Act, 1968. It offers safety with attractive interest rate and returns that are fully exempted from Tax.
Who can open account under PPF scheme :
** Individual or individual as guardian of a minor can open the account. (account cannot be opened in Joint names).
** Only one account can be opened by an individual in his/her own name.
Limit of Subscription to a PPF account :
Minimum subscription of Rs.500/- and maximum of Rs.1, 50,000/- can be made in lump sum or in 12 instalments per financial year. (The subscription limits stands enhanced to Rs. 1,50, 000/ per year w.e.f. 23.08.2014)
When is an account treated as Discontinued :
Where subscribers fail to subscribe the minimum amount Rs 500/- in a financial year, the account will be treated as discontinued. The subscriber in such cases will not be entitled to obtain a loan or make a partial withdrawal unless the account is revived. The subscriber cannot open another PPF account in addition to the discontinued one.