I am having 1 query. I have transfered from 1 city to another. Can the PPF account be transfered to any city ? What is the procedure ?
Regards, Nirav On Fri, Mar 26, 2010 at 11:12 PM, Raj: <[email protected]> wrote: > KNOW ALL ABOUT PPF (PUBLIC PROVIDENT FUND) FAQ > People who are interested in liquidity or small-term gains would not be > very keen about PPF because the duration for the investment is 15 years. > However, the effective period works out to 16 years i.e., the year of > opening the account and adding 15 years to it. The contribution made in the > 16th financial year will not earn any interest but one can take advantage of > the tax rebate. > > It is that time of the year that most of us would have already made our > decisions as to where we will make our investments or would at least have > had the chance of looking at different investment instruments. > At one point in time or the other we would have come across ‘Public > Provident Fund’ as an effective investing instrument. But how much do we > know about Public Provident Fund or, PPF? > > *What is the Public Provident Fund (PPF)?* > The PPF is a long-term, government backed small savings scheme of the > Central Government started with the objective of providing old age income > security to the workers in the unorganized sector and self employed > individuals. > > > *What is the interest rate offered through PPF?* > Currently, the interest rate offered through PPF is around 8%, which is > compounded annually. Interest is calculated on the lowest balance between > the fifth day and last day of the calendar month and is credited to the > account on 31st March every year. So to derive the maximum, the deposits > should be made between 1st and 5th day of the month. > > > *What is duration of the investment?* > People who are interested in liquidity or small-term gains would not be > very keen about PPF because the duration for the investment is 15 years. > However, the effective period works out to 16 years i.e., the year of > opening the account and adding 15 years to it. The contribution made in the > 16th financial year will not earn any interest but one can take advantage of > the tax rebate. > The account holder has an option to extend the PPF account for any period > in a block of 5 years after the minimum duration elapses. The account holder > can retain the account after maturity for any period without making any > further deposits. The balance in the account will continue to earn interest > at normal rate as admissible on PPF account till the account is closed. > > > *What is the minimum and maximum amount of deposit?* > The minimum deposit that you can make into a PPF account in one whole > financial year is Rs. 500. The maximum is Rs. 70, 000. > > > *Who can open a PPF account and where?* > A PPF account can be opened by an individual (salaried or non-salaried). An > individual can open only one PPF account to which he contributes. A PPF > account can also be opened in the name of your spouse or children. > It can be opened with a minimum deposit of Rs. 100 at any branch of the > State Bank of India (SBI) or branches of it’s associated banks like the > State Bank of Mysore or Hyderabad. The account can also be opened at the > branches of a few nationalized banks, like the Bank of India, Central Bank > of India and Bank of Baroda, and at any head post office or general post > office. > > > *What are the tax benefits from PPF?* > The amount you invest is eligible for deduction under the Rs. 1, 00,000 > limit of Section 80C. On maturity, the entire amount including the interest > is non-taxable. > > *Is it possible to withdraw the amount deposited at any time during the > tenure?* > Yes. You can take a loan on the PPF from the third year of opening your > account to the sixth year. So, if the account is opened during the financial > year 2009-10, the first loan can be taken during financial year 2011-12 (the > financial year is from April 1 to March 31). > The loan amount will be up to a maximum of 25% of the balance in your > account at the end of the first financial year. You can make withdrawals > during any one year from the sixth year. > You are allowed to withdraw 50% of the balance at the end of the fourth > year, preceding the year in which the amount is withdrawn or the end of the > preceding year whichever is lower. For e.g., if the account was opened in > 2000-01, and the first withdrawal was made during 2006-07, the amount you > can withdraw is limited to 50% of the balance as on March 31, 2003, or March > 31, 2006, whichever is lower. > > <http://www.blogger.com/post-edit.g?blogID=2599850630139789910&postID=4258863128159896022> > > <http://www.blogger.com/email-post.g?blogID=2599850630139789910&postID=955962707182703501> > > -- > You received this message because you are subscribed to the Google Groups > "Skorydov MyTaxAssistant Member Group" group. > To post to this group, send email to > [email protected]. > To unsubscribe from this group, send email to > [email protected]<skorydovmytaxassistant%[email protected]> > . > For more options, visit this group at > http://groups.google.com/group/skorydovmytaxassistant?hl=en. > -- You received this message because you are subscribed to the Google Groups "Skorydov MyTaxAssistant Member Group" group. 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