Public provident fund India

Public provident fund India-Know your Status
Public Provident fund or simply PPF is a scheme introduced by the Government of India in 1968 under which any citizen of India can make a contribution to the scheme by which he/she can claim a income tax rebate under appropriate Income tax laws.
Only Individuals are eligible to invest in the public provident fund. If the individual is a minor, an individual corresponding to the minor can make a contribution to the scheme.
The duration of the scheme is of 15 years but can be extended for 1 or more terms of 5 years. The PPF account can be terminated at any time but further contributions to the scheme later can only be made once 15 year term is over.
Investment amounts
A minimum amount of Rs.500 can be made per annum and any further amount can be made in multiples of Rs.5 subject to a maximum of Rs.70000 per annum.
Interest rate calculation
The interest rate for your PPF account is calculated on every 31st of March at 8%. This interest rate is calculated based on the minimum amount that exists in your account between 5th of March and 31st of March.
So one should not withdraw any part of the PPF amount between March 5th and 31st if the Interest rate is to be fully utilized.
Tax benefits
The Interest accrued from PPF is completely exempted from the Income Tax under section 88 of IT Act.
And any amount that is to be credited is also fully exempted from wealth tax.
Loan facility
Loans of up to 25% of the balance at the end of 1st financial year from 3rd to 6th year can be taken. Next loan can be taken once the first loan is completely paid off.
Withdrawal policy
Withdrawal of PPF amount is not possible for the first 5 years. From the 6th year you can withdraw amount from your account but that can be made only once in a financial year.
If the account is extended beyond 15 years, up to 60% of the balance at the start of the extended period can be withdrawn.
You can contact your bank or the Post office branch or anybody in which you opened the account at any time to know the status of your PPF account.
Likewise, if you want to see the status of your PPF account and have your account in SBI or its subsidiaries, contact your branch to add the PPF account to your existing Online banking account and also ask to give you the transacting rights so that you can view, check your account status and pay your PPF online.