SBI PPF Account
|PPF Account which is the abbreviation for Public Provident Fund Account is by far the best known way for saving taxes and one can also earn a considerable tax-free interest unlike in banks on Fixed Deposits. In 1968, the central government came up with this scheme, where the people can attain Income Tax Rebate under the income tax’s pertinent places, by contributing to the Funds. Mentioned are complete necessary details regarding the SBI PPF account.
SBI PPF Account Features
Deposit Limit: To deposit money, the minimum amount that can be invested is Rs.500 per annum in multiples of Rs. 5. The maximum amount is Rs. 100, 000 per annum.
Duration: The PPF account matures after a period of 15 years after which the complete amount of balance can be withdrawn.
Interest Rate: The interest rate has been increased to 8.8% per annum which is credited to the account when the financial year is over.
Withdrawal: Only one withdrawal is permitted in any one year from the sixth year. There is a limit of 50% of the balance that can be withdrawn at the credit by the end of the fourth year that comes prior to the year in which the amount is withdrawn or by the end of that year, whichever one is lower. If the account has prolonged for more than 15 years, then an amount comprising of 60% of the balance to the credit can be partially withdrawn by the termination of the extended period. The account can also be prolonged after the period of 15 years, for one or more blocks of 5 years.
Loan: When the third financial year ends, a loan up to 25% can be taken from third to sixth year. A second loan can be asked for only after the payment of the first loan is covered. A rate of interest of 2% per annum is charged on a loan taken by an individual holding a PPF account on or after 01.12.2011. Loans taken up till 30.11.2011 will continue to be charged with a rate of interest of 1%. SBI PPF calculator helps in calculating your PPF maturity amount relying on the investment made by you every year.
SBI PPF Account Tax Benefits
- There will be no income tax charged over the interest.
- The benefits are available under section 88 of the I.T. Act.
- The amount standing to the credit is not liable of Wealth Tax.
- An individual’s minor child or the spouse is privileged with the tax benefits also.
- The individual can transfer his/her PPF account from one branch to any other branch.
- The versatility of the amount that can be deposited is suitable for individuals from any societal background.
- Holding an SBI PPF account helps an individual to plan their tax related issues and attain Income Tax Rebate of 8%.
SBI PPF Account Eligibility
Any individual – salaried or self employed can enjoy the benefits of this scheme. Moreover, any individual can invest in this scheme on behalf of a minor also. NRIs are prohibited from endorsing in this scheme. If a person opened his/her SBI PPF account when he/she was residing in India, and later on became an NRI, then he/she is allowed to invest in his/her account
How to open SBI PPF Account
Opening an SBI PPF account is a hassle free process and hardly consumes any time. A person can open a PPF account in various selective branches of SBI. Here is a stepwise complete guide:
STEP 1: This involves selecting the government authorized SBI branch closest and most suitable to you. This process can be made simple by using the SBI branch locater tool that gives out the list of SBI branches available nearest to you.
STEP 2: After deciding the preferred bank branch, what you need is an Account Opening Form. The form can be procured from the bank branch or can be downloaded here for your convenience: "download". Once you’ve filled the form, you need to submit a proof of identity, proof of residence and 2 passport size photographs. It is advisable to carry the originals for verification purposes.
STEP 3: Next, you have to fill a pay-in slip and your account will credit an initial subscription. As soon as your PPF account is opened in SBI, a PPF account Passbook shall be issued to you which will record all the details of transactions that take place in your SBI PPF account. The PPF rules are mentioned for your information at the back of the passbook.
SBI PPF Account Online
Now comes in the next step of depositing money in your SBI PPF account. With the online access, depositing money becomes an even simpler job. With the help of SBI internet banking, this job can be accomplished easily from your home. All you need to do is register yourself online with SBI. Here you can also check the details online of the status and statements periodically. Login to your online account, enter your account number and make payment of whatever amount you want, to your account.
SBI PPF Account Forms
|Name||Types of PPF Form||Download Here|
|Form-A||Account opening form||Download|
|Form-C||Application for withdrawal||Download|
|Form-D||Application for loan||Download|
|Form-F||Cancellation or Variation of Nomination||Download|
|Form-G||Application for Withdrawal by nominee / legal heirs||Download|
|Form-H||Application for Continuance of Account Beyond 15
For closing an existing PPF Account, the individual can visit the authorized SBI branch and ask for a PPF account closure form.
SBI PPF Account Terms and Conditions
- One person can have only one PPF account at a time. If it is found out that a person is having 2 accounts, then the second account shall be closed immediately and the principal amount invested shall be refunded and interest shall be lost.
- One cannot open the PPF account using a joint name. It can only be opened on the individual’s name. One can surely appoint a nominee.
- An account can be renewed after its discontinuation. The account renewal can be done on a payment of Rs. 50 per year, along with Rs 500 arrears of subscription.
- In case of death of the account holder, with the account having no nominee, the person’s legal heirs will take possession of the deposited amount in the PPF account.
- The closure of PPF form cannot be done before the account completion.
SBI PPF Account Customer Care
In case of any complaints or queries, the customer is free to contact the following toll free numbers in their respective cities.
|Cities||Toll Free Numbers|
|New Delhi (Noida)||1800-11-4545|
Last Updated On: 18/06/2012