Fight Against Coronavirus   1. Wash Your Hands Frequently   2. Maintain Social Distancing   3. Avoid Touching Eyes, Nose and Mouth   4. Practice Respiratory Hygiene   5. Stay Informed and Follow Advice given by Your Healthcare Provider   6. If You have Fever, Cough and Difficulty Breathing, seek Medical Care Early             Dial National Helpline Number +91-11-23978046 or 1075

Public Provident Fund (PPF)

Public Provident Fund (PPF) is a scheme of the Central Government of India for the investment which not only generates guaranteed returns but also gives tax rebate under section 80C of Income Tax Act. PPF account can be opened for a minimum period of 15 years and can be extended indefinitely in block of 5 years.

PPF is very popular investment instrument among all the money-saving avenues available for investment due to its flexible nature. The balance lying in PPF account is not subject to attachment under any order or decree of court.

When was PPF Launched?

  • Individuals, who are residents of India, are eligible to open Public Provident Fund Account.
  • A person of any age can open a PPF account.
  • A person cannot open more than one account in his/ her own name.
  • Joint ownership of PPF Account is not permissible.
  • Minors can also open their PPF Account. However, there must be a guardian for PPF accounts opened in the name of minors. Parents can become guardian of their minor children. A guardian has to be only the father or the mother (not both) or a court-appointed guardian. A grand-parent cannot open PPF account on behalf of his/ her grand-child apart from those cases in which both the parents have died.
  • Non-resident Individuals (NRI), Hindu Undivided Families (HUF) or Body of Individuals (BOI) cannot open PPF Account.

Interest Calculation in PPF Account

PPF interest is calculated at the prevailing rate on monthly basis on the lowest balance between the end of the 5th day and last day of month but the total interest for the whole financial year is credited to PPF account only once i.e. at the end of financial year.

Interest earned on the PPF account is fully exempt from tax under Section 10 (11) of the Income Tax Act.

Tax Advantages under PPF

Interests are tax-free and contributions are eligible for tax exemption under Section 80C of the Income Tax Act. Withdrawals are also fully exempt from tax.

Upcoming Bank Holidays

2021 January 20 is a bank holiday in Chandigarh due to Guru Gobind Singh Birthday.
2021 January 23 is a bank holiday in Tripura due to Netaji Subhash Chandra Bose Jayanti.
2021 January 23 is a bank holiday in West Bengal due to Birthday Of Netaji.
2021 January 23 is a bank holiday in Andaman And Nicobar Island due to 4th Saturday Bank Holiday.
2021 January 26 is a bank holiday in Andaman And Nicobar Island due to Republic Day.
2021 February 11 is a bank holiday in Chandigarh due to Maha Shivaratri.

Find More Useful Links

Financial Calculators